Wouldn't modifying the tax code now to tax the AIG bonuses at 100% be ex post facto legislation?
by 
Jim in a Nautilus COAT
ANSWERS: 2
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It would surely be struck down by the supreme court. It's simply posturing from the embarrassment that Congress feels in that they didn't do the research on this bailout that they should have. They wanted to "look good" by voting it through fast and, at first, they did. Now they have no one but themselves to blame. MSNBC reported today that most of the executives who got these bonuses were Europeans located in the London office. NICE, Congress. I wonder how much more money has been wasted by congressional undersight. I said this was a bad idea at the time, and certainly not thought through.
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You cannot enact legislation, new tax law, etc. directed strictly at a a handful of people. Just like you cannot abrogate one contract and not endanger every contract under the same jurisdiction. Plus we still need those guys; they are the only ones that understand what's happening with derivatives, etc and the only ones who can get us out (if that's possible)without alot more damage occurring. Plus we don't want them settting up shop and taking advantage of the current situation against AIG.
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