Taxing AIG Bonuses Is Unconstitutional
There has been a lot of public outrage against AIG for paying some of its executives retention bonuses. The logic here is that AIG is a struggling company that has accepted well over $150,000,000,000 [$150 billion] in federal government aid, and therefore should not be giving its employees bonuses. Before we all grab out pitchforks and torches, we must remember that it is not legal for the federal government to create a new tax targeted towards AIG’s executives.
Retroactively taxing AIG employees’ bonuses is an unconstitutional act. Article I, Section 9, Clause 3 of The Constitution reads as follows: “No Bill of Attainder or ex post facto Law shall be passed.”
The prohibition on passing bills of attainder means that it is illegal for Congress to pass a law that punishes AIG employees (or any other specific group of people) without granting due process. The prohibition on passing ex post facto laws means that Congress cant pass a law declaring something to be illegal and then punish people for committing the act before it was illegal.
Congress is currently debating passing a bill that would tax AIG executives’ bonuses at 90%. The House of Representatives overwhelmingly passed a bill that would do preciously this last week. This bill is unconstitutional and should not be passed by the Senate. If it does pass the Senate, then President Obama should stand up for the Constitution and veto it.
Americanly Yours,
Phred Barnet
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