House Bill Introduced Would Slap 60% Surtax on AIG Bonuses while Schumer Also Threatens Huge Bonus Tax

Representative Gary Peters (D-MI) said on Tuesday he has introduced a bill that would slap a 60% surtax on large bonuses to be paid to executives at insurer American International Group Inc. (AIG). The bill and has picked up five co-sponsors.

Published on March 17, 2009

He said in a statement that the bill would "create a 60% surtax on bonuses over $10,000 to any company in which the U.S. government has a 79% or greater equity stake in the company. Currently, AIG is the only company that meets this threshold."

Meanwhile Senator Schumer (D-NY) today threatened a huge tax on AIG bonuses: "They should voluntarily return them (the bonuses). If they don't we plan to tax virtually all of it," Sen. Charles Schumer, D-N.Y., a member of the Democratic leadership, said in a speech on the Senate floor.