Tax Wall Street bonuses say readers
Our Readers Who Comment are rather unhappy this morning about the huge bonuses planned for Wall Street executives whose companies took bailout money, and Obama administration officials are too.
As Michael A. Fletcher and Zachary A. Goldfarb report, "The White House has been taking an increasingly confrontational tone against Wall Street bonuses and lobbying efforts to prevent its broad plan for new financial regulations."
Many readers find the bonuses offensive, particularly with millions of Americans still out of work. Several suggest that a return to high income tax rates for those making gazillions would be an excellent solution for the problems. And some -- who apparently are unaware of just how we got here -- think government has no business messing with the private sector at all.
We'll start with this exchange:
kathymac1 wrote, "We are thinking of giving some of our employees raises, is the government going to tell us how much we can give them??"
To which B2O2 responded, "That depends - are you owned in part by the government because of your recent extreme ineptitude? If you are, then they should. Any more questions?"
And geber22 said, "Did you take welfare checks from the government, within the past year? If so then yes Kathy the govt should be all in your business, if you didn't take any welfare checks, then absolutely not!"
Berghammer wrote, "Economists are almost universally of the view that massive de-regulation was responsible for the financial collapse. A collapse that did great damage to the rest of us while bankers emerged unscathed and indeed reaping enormous rewards in the form of bonuses. These guys should have to be so tightly regulated they will have to raise their hands for permission to go to the restroom."
gsloss said, "I cannot see Obama (or any President) standing up to the Financial institutions. They run the show. The Executive branch and Congress are but pawn in their game."
prossers7 wrote, "Our forefathers wrote the Constitution of the United States of America to preclude any such take over of publicly held entities for this very reason. The government has no business interfering in the function of any business, period..."
mbmclaughlin proposed that "Setting an Eisenhower-level top marginal rate (91% on compensation in excess of $3 million) would take care of all of the perversions due to excessive compensations. Even the Nixon-level rates of 70% would probably do the trick. It'd also help balance the budget..."
rwoloszyn said, "Obama needs to rescind the Bush tax cut for the rich. And for those who abuse the bonus situation, raise their tax rate substantially enough to discourage the practice."
And danigo asked, "What are the investment banker guys supposed to do, volunteer to pay out their bonuses in taxes? If Congress and Obama are outraged there is a simple answer: tax the bonuses. They make their money from trading. Should it be illegal? Maybe, but then make it illegal, that way no one makes money and no one can be taxed. It's the old Soviet system."
SimAlex wrote, "WHEN GOVERNING, one should always try to solve problems with overly complicated solutions, then when those "solutions" have unintended consequences, one should blame the people who take advantage of those consequences, rather than blaming the mindless drone-bureaucrats who came up with "solutions" in the first place."
DianaRay19 said, "Seems like a bit of a hypocrit to upbraid anyone for for for mismanagment of money when he's sending billions of aid to Afghanistan, while at the same time freezing the cost of living increase in the American people's social security checks this year..."
mike85 wrote, "Obama is doing exactly what Franklin Roosevelt did. Help the super rich to become even richer, then feign anger when it hits the press."
Toosoonoldtoolatesmart said, "I'm not sure what relationship there is between "soaring profits" and "continuing high jobless rates." However, I am almost positive that increasing the national debt with giveaways of every stripe, and invoking class warfare at every turn is not the way to restore prosperity to the country..."
jennandgus wrote, "Ooooooooohhhh! They've been upbraided and chided even. That'll scare 'em. Next a reprimand and a stern talking to..."
We'll close with nanonano1 who said, "Big business doesn`t care what Obama says."
All comments on this article are here.
By Doug Feaver |
October 19, 2009; 6:33 AM ET
Previous: A Social Security Bribe? |
Next: Split opinions on Afghanistan policy
Posted by: HookedOnThePost | October 19, 2009 12:49 PM
This may have been said previously, but since Goldman-Sachs would be insolvent w/o government assistance, their entire bonus pool should be sent to the US Treasury.
The mere thought of giving employees of this company (or any company requiring Gov't assistance) $700k bonuses speaks volumes about lack of any moral compass from these "Financial Elites".
Posted by: vgkerrigan | October 19, 2009 12:15 PM
There's really only a few reasonable responses to the situation. One is for Congress to pass a special bill to tax those profits anywhere from 50-90% rate. Since those profits were made with capital from the taxpayer, that's a reasonable way to compensate the American people. However, it is Congress's purview, not the President's.
Posted by: Pupster | October 19, 2009 11:52 AM
I am more upset with the 25,000 plus federal jobs that were 'created' from the porkulus bill. Further, let us tax the czars' income at a higher rate as well as their staffs, but they will probably use the Tim Geithner Charlie Rangle method of computing their taxes. Also, have Obama pay for carbon footprint of his date in New York.
Posted by: BeanerECMO | October 19, 2009 11:05 AM
I believe our country was 'RUSHED' to the Extreme to get a JOB-SAVING/CREATING stimulus into place in February. Why doesn't the Administration worry about where all of those new jobs are instead of worrying about pay and bonuses?? This 'anger' is to distract us from a job so-far poorly done!
Posted by: bscherer | October 19, 2009 10:49 AM
The comments to this entry are closed.
Make a special tax to suck back all that bonus money from Wall Streeters. Then charge the sycophant SEC investigators with treason. By the way, an official of the SEC stayed recently at the Hotel Del Coronado near San Diego, on business. $700 per night, charged to you the taxpayer, thank you very much. How many cheaper hotels are in the same area?