Thursday, March 19, 2009

U.S. Rep. Kendrick B. Meek Strongly Backs Passage of Executive Bonus Legislation

Today U.S. Rep. Kendrick Meek voted to pass bipartisan legislation to tax bonuses given by companies such as AIG that received government rescue funds.

“Congress should not be required to legislate commonsense, but today, we did exactly that,” said Congressman Kendrick Meek. “On a week where the stock market began showing signs of renewed life and Fed Chairman Ben Bernanke predicted that the economic downturn would level off in 2009, this scandal has forced us to take our eyes off the ultimate economic prize – the restoration of credibility and integrity to our financial system. Recipient of TARP funds must understand through legislation, public outcry and basic commonsense that bailout dollars are not multicolored Monopoly bills – they are hard earned taxpayer money and the future of our economy rests in the careful stewardship of those financial resources.”

The legislation will tax bonuses from companies that received $5 billion or more in TARP funds at 90% for individuals who earn over $250,000 per year. Currently, the IRS withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million dollars.

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