FT.com / Global Economy - Banker fury over tax ?witch-hunt?
This is very much what I feared might happen, when I first read about the proposed punitive taxation of AIG workers, who received the Retention bonus after the US had injected so much cash into AIG, in an attempt to save it from crashing.
However people feel about these guys receiving an apparent reward, especially after their own actions in causing the mess in the first place, a simple fact still remains, these are the only people who can work to undo the mess they created.
If they decide to leave and take their knowledge of AIG with them to another financial institution that has not received US bail out money (and yes there are such Banks) their knowledge can be used against the interests of AIG, such that their new employers may gain profits in the Billions.
Naturally they will also receive bonus for these profits, could Pelosi and her crowd then charge punitive taxation for those bonus's.
I believe (I am not certain) it may be possible under this new Tax law, to limit the amount anyone gets by way of a bonus, retention or otherwise.
I would have wished for Congress to have stepped back a pace and actually thought things through.
But it seems that with such an outpouring of Public (potential voter) indignation, Congress decided on a knee jerk reaction.
Which may well turn round and make this situation immeasurably worse.