This article first appeared in the St. Louis Beacon, March 19, 2009 - U.S. Rep. Blaine Luetkemeyer, R-St. Elizabeth, says he makes no apologies for voting Thursday against legislation that, as he sees it, "raises taxes to try and cover up the Administration’s support for AIG bonuses contained in the so-called stimulus package."
Thursday's vote was 328-93 in favor of imposing a 90 percent rate on the bonuses given to AIG executives, after the firm has gotten tens of billions in federal bailout funds. Democrats overwhelmingly backed the tax hike, while Republicans were split.
Two area members of Congress, Democrats William Lacy Clay and Russ Carnahan, voted for the tax hike.
Said Luetkemeyer:
“It is a disgrace that the very same people who hastily approved a massive spending bill they knew contained $165 million in taxpayer-financed bonuses for AIG executives are now trying to cover it up with false outrage and tax increases.
"I am also extremely troubled that this bill opens the door for selective government taxation of individuals, which is constitutionally questionable at best. I co-sponsored legislation to force 100 percent of the money to be paid back immediately, but the majority – the ones that allowed this situation to happen in the stimulus – is now trying to recoup only 90 percent of the money. With this legislation, the Administration and liberal majority in Congress who created this mess are leading us down the dangerous path of creating a political economy.”
Luetkemeyer noted that he had supported alternatives that didn't get a floor vote: --"H.R. 1582, the Executive Bonus Repeal Act. This bill would strike the clause in the so-called stimulus bill – inserted secretly and which Congressman Luetkemeyer voted against – that allowed taxpayer funds to be used for bonus payments to executives."
--"H.R. 1577 directs the Secretary of the Treasury to recoup within the next two weeks the payment of AIG bonuses; requires any future bonus payments, of any kind, to Troubled Assets Relief Program (TARP) recipients, to be approved in advance by Treasury; and requires that any future contractual obligations entered into by TARP fund recipients to make bonus payments of any kind be approved in advance by Treasury."
--"H.RES 251, a resolution of inquiry, that forces Treasury Secretary Tim Geithner to provide all information regarding AIG’s use of federal bailout money to Congress, including payment of $165 million in bonuses."
Here's the counter views by Clay:
“The taxpayers own 80% of this company, and the owners want their money back … now. This is exactly why I voted against the Wall Street bailout in the first place, because I knew that there was very little oversight and few safeguards to prevent the abuse of tax dollars. This economic emergency requires a new level of transparency and responsibility and I’m pleased that the House acted so quickly to correct this offensive and irresponsible conduct.”'
And Carnahan:
"Government action under these circumstances is obviously warranted and Congress, as well as President Obama is right in seeking all legal remedies to recoup these funds. Today’s bill is a common sense solution to recoup bogus bonuses for the undeserving that are being paid for with taxpayer dollars.”
