Americanly Yours

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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Yesterday, Wal-Mart announced a massive $2 billion employee bonus plan which “include[s] $933.6 million in bonuses that the retailer is handing out Thursday.  There is another $788.8 million in profit sharing and 401(k) contributions, and hundreds of millions of dollars in merchandise discounts and contributions to the employees’ stock purchase plan.”

This is quite an amazing plan, especially for a retailer that is derided by critics for under compensating its employees.  Despite the recession, this bonus is over 10% higher than last year’s employee bonus.

This is not an executive bonus plan; these bonuses will benefit Wal-Mart’s (literally) blue collar employees–the cashiers, customer service representatives, and stockers.  Wal-Mart’s generous bonus will hand these employees an average of $933.60 per person, with over half of that paid out to employees yesterday!

Now, lets contrast this bonus with Mr. Obama’s “stimulus” plan:

Mr. Obama’s “stimulus” plan pays each worker $400 through a “tax cut.”

Wal-Mart is paying each worker an average of $933.60.

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Mr. Obama’s tax cut comes in the form of a payroll tax deduction, averaging $13 per week for the rest of the year.

Wal-Mart’s bonus includes more money per worker up front than the total paid out by Mr. Obama’s plan.  It also includes various other benefits to be paid out in the future, including discounts, contributions to retirement funds, and increased ownership for workers in the company.

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Mr. Obama’s “tax cut”/”stimulus” is being financed with debt, and workers will have to pay back their “tax cuts” in the future.

Wal-Mart’s bonuses are being paid for with cash, coming from the company’s profits.  The workers get to keep their bonuses, and will not have to pay back the money in the future.

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Which do you think is more generous benefit?  Mr. Obama’s “tax cut” that will have to be paid back in the future, or Wal-Mart’s cash payment and investment in their workers future livelihoods.  I know which I would prefer.

Americanly Yours,

Phred Barnet

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