Washington DC - Congressman Duncan Hunter (R-CA) today opposed legislation offered by House Democrats to tax AIG bonuses. Alternatively, Hunter was an original cosponsor of legislation put forward by House Republicans that would have fully recovered AIG bonuses and prohibited all federal bailout funds from going to that institution.
"The fact that AIG is paying out executive bonuses at taxpayer expense is outrageous," said Congressman Hunter. "This is an intentional loophole included in the economic stimulus bill by Democrats to allow AIG and other companies that receive federal bailout dollars to continue paying executive bonuses.
"American taxpayers deserve all their money back, not just 90 percent of it. President Obama, behind the Department of Treasury, should move to immediately recoup these bonuses and prohibit any more tax dollars from being used to enhance the personal wealth of corporate executives at AIG and other troubled institutions. House Republicans offered this approach today, but it was struck down by Congressional Democrats.
"We need to know when this provision was agreed to and who was involved. American taxpayers are entitled to the truth."
Note: Congressman Hunter cosponsored legislation, H.R. 1577, that would have directed the Treasury Department to recover the payment of AIG bonuses within two weeks of enactment. In addition, the bill would have required that any contractual obligations or bonus payments to TARP fund recipients must be approved by Treasury.