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Sunday, March 22, 2009
Debra J. Saunders :: Townhall.com Columnist
Congress, Overtax Thyself
by Debra J. Saunders
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In California this week, President Obama told a town hall meeting: "I know Washington's all in a tizzy, and everybody's pointing fingers at each other and saying it's their fault, the Democrats' fault, the Republicans' fault. Listen, I'll take responsibility; I'm the president."

After the House passed the tax-the-bonuses bill, Obama announced, "Now this legislation moves to the Senate, and I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated."

It would be a sorry example of taking responsibility for Obama to sign a measure that goes back on not only his own stimulus package but also the very language that his people asked Dodd to insert. I feel as if I'm watching a movie in which a hired thug kills someone and then another hired thug kills the first thug and then another thug kills the second thug.

In less than two months in office, Obama has shown that in a town full of snakes, he's the fastest runner. Who on Wall Street will trust him now?

On Monday, Sen. Charles Grassley, R-Iowa, suggested AIG executives take old-fashioned responsibility and show remorse for their failures -- and "resign or go commit suicide," a statement that Grassley later half-rescinded Washington-style.

Actually, AIG Chief Executive Officer Edward Liddy was working on just that. As he told a House Financial Services subcommittee Wednesday, some bonus recipients volunteered to return 100 percent of their bonuses, and he was asking those who make more than $100,000 a year to return half.

If Liddy can step up to the plate, why not Congress and Obama? If Washington truly believes that entities that screw up should not be subsidized by taxpayers and if Obama truly believes in taking responsibility, then Congress should pass and the president should sign a bill to levy a 90 percent tax on the pay and benefits of Congress and the president. Or they could match AIG and go halves.

Or do members want to argue that more than financial institutions, their precious hides are what is too big to fail?

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This feigned outrage has...
caused the House to pass an unconstitutional bill, without even a second thought. Woe to all those representatives who voted for this bill. Don't they realize they have a duty to uphold the constitution?

Also, let's examine the "moral outrage" here. Who says that the people receiving these bonuses are not entitled to them? After all, no one in Congress (viz. Rep. Frank) even knows who they are or what their contribution to AIG's position was. Moral judgments ought to be based on facts, ya think?

Because the public, led by Congress, does not understand the complexities of AIG's position, they go to the easy "bad guy, good guy" moral assessment of the situation. What a poor substitute for a critical examination of the circumstance.

Finally, the bonuses represesnt 0.1% of the taxpayer purchases of AIG securities. How 'bout having the public concentrate on the bigger picture - i.e. the $160B that Congress gave to AIG?

I guess I must be stupid....
In the stim-u-@ss package (that no one bother to read) you gave them money to pay bonuses. Now you scream that is not right?

Why does the congress say we screwed up?
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