Saturday, March 21, 2009

AIG Is Not The Problem

I originally posted this elsewhere, but I figure it's worth posting here too (with a few minor tweaks).

The AIG tax bill that the House passed is beyond ridiculous. It is outright unconstitutional according to Article 1, Section 9:
No bill of attainder or ex post facto Law shall be passed.
A bill of attainder is "a legislative act that singles out an individual or group for punishment without a trial." The bills language is very tightly targeted to just AIG, and retroactive to previously allowed actions. I do not see how this will pass legal muster or either the attainder or the retroactive aspects. I predict someone will take it to court and spank Congress heartily, all at our expense.

I also find the utter hypocrisy of both the Congressional and Executive branches in this matter to be completely disgusting: Sen. Dodd Admits Adding Bonus Provision to Stimulus Package
In a dramatic reversal Wednesday, Sen. Chris Dodd confessed to adding language to a spending cap in the stimulus bill last month that specifically excluded executive bonuses included in contracts signed before the bill's passage.

Dodd, D-Conn., told FOX News that Treasury officials forced him to make the change.

Amid AIG Furor, Dodd Tries to Undo Bonus Protections in the 'Dodd Amendment' Rules
Senate Banking Committee Chairman Chris Dodd (D-Conn.) on Monday night floated the idea of taxing American International Group bonus recipients so the government could recoup some or all of the $450 million the company is paying to employees in its financial products unit.
The outrage being expressed by Dodd, Geinter and The One is completely bogus and two-faced. Two (or even three or four) wrongs do not make a right. Obviously neither does Congress or the President.

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