Special Bonus Tax Bill Labeled ‘Unconstitutional’

Even though I hate the fact that inept corporate executives got bonuses from bailout money given to AIG, I have to agree that levying special taxes against them is unconstitutional. It would have been better to prevent the bonuses before passing the legislation (talking to you, Senator Dodd).

Last week the House voted to slap a 90 percent tax on executive bonuses at bailed out financial firms like AIG. The tax would apply to employees whose total annual pay exceeded $250,000 at firms which received more than $5 billion in government bailout funds.

John Berlau is director of the Center for Investors and Entrepreneurs at the Competitive Enterprise Institute. He says the bonus tax is unconstitutional.

“The Constitution clearly prohibits what are called ‘bills of attainder’ — bills that seek to punish certain individuals and not others for crimes and misdeeds,” he explains. “The Constitution clearly reserves that for the courts.”

Read the rest of the article here.

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