PrintMarch 23, 2009
A Chilling Harbinger: Confiscation as Taxation
Congress' lopsided vote on Thursday to tax AIG executives' bonuses at no less than 90%, and to apply the same to other bailout recipients, undermines Constitutional and contract law and is a clear abuse of power. Americans who applaud this act may want to think twice. If Congress is willing to break the law to confiscate these executives' bonuses, what will stop it from extending legislation to those who receive no government bailout money?You may say that's absurd. This is a special case. Congress is merely recovering taxpayer money from ill-managed and profligate enterprises. But Charles Krauthammer writes: "[T]here is such a thing as law. The way to break a contract legally is Chapter 11. Short of that, a contract is a contract. The AIG bonuses were agreed to before the government takeover and are perfectly legal. Is the rule now that when public anger is kindled, Congress will summarily cancel contracts? "Even worse are the clever schemes...(Read Full Article)
