The Power to Correct

It has been said that the power to tax is the power to destroy. Apparently it may also be the power to correct the mistakes that Congress has previously done. House Bill 1586 proposes to put massive taxes- around 90%- on the bonuses received by executives of failing firms like AIG, Freddie Mac, and Fannie Mae.

These bonuses have been the center of controversy ever since news first arrived that taxpayer dollars were being given as bonuses to executives at companies that were being bailed out. (The first question was, "If they are driving their businesses into the ground, why are they getting bonuses?")

Eyebrows were also raised when it turned out that Democrats, led by Sen. Dodd, had stricken a provision that no bonuses could be given to failing companies receiving bailout money. HB 1586 seems to be their way of fixing this problem: taxing the money right back. The taxes would be retroactive on amounts already paid to executives earning more than $250,000 annually.

I think this is a good idea. These executives are responsible for the poor performance of their companies, and they have dragged the entire world economy down with them because of greed. To reward them with bonuses is tantamount to giving our approval. Instead, they should be taking the same losses as their companies and the global markets. Hopefully, this measure will fix this problem.