For anyone who questions the reason AIG used tax dollars to pay bonuses does this help?

I wrote my congressman to voice my concerns about the AIG bonuses and this is what he had to say:

Thank you for contacting me about the issue of executives at AIG receiving bonuses. Like you, I still have a lot of questions about how these bonuses were allowed to be paid and who authorized it. As small businesses and middle-class Americans struggle to make ends meet in this economic crisis, I share the outrage that taxpayer dollars should not be used for executive bonus payments. We deserve an answer as to how this happened.

The Financial Services Committee, on which I serve, held a hearing to examine this issue on March 18, 2009. I questioned how $165 million in taxpayer dollars could be given out in bonuses to AIG executives and we still do not know the full answer to that question. News reports highlight that these bonuses would not have been allowed if a provision in the hastily-drafted stimulus spending legislation was not removed behind closed doors. This is taxpayer money and we deserve to know what went on behind those closed doors and why either the Treasury Department or Democratic leadership stripped an amendment that would have banned these types of bonuses.

However, in response, the House scheduled a bill to be voted on the House floor that did not seek to end these bonuses from happening, but instead created a punitive 90% tax on these bonuses. I voted against this hastily-drafted constitutionally-questionable bill because it uses the tax code as an unprecedented punitive tool against tax-payers, and does nothing to stop future companies that have taken bailout and taxpayer money from giving executive bonuses. I supported an alternative bill that would have required the Treasury Department to be accountable with our taxpayer dollars by approving any future bonus payments for companies that have received taxpayer funds, and recouping 100 percent of our taxpayer money back. It is my belief that hardworking American taxpayers deserve all of that money back. Unfortunately, that alternative bill was not given the opportunity to be debated or voted on.

Thanks again for contacting me on issues of importance to you. If you would like additional information on services my office can provide you, my votes and positions on issues facing our nation, and to subscribe to receive periodic "e-newsletters," please visit my website at http://kevinmccarthy.house.gov/

Sincerely,

M

KEVIN McCARTHY

I do not think that the bonuses should be taxed at 90% or that the government has the right to demand them to be given back. My

belief is that it was a mistake by the current administration and that they should take action going forward to prevent this from happening again. I would also like to say that Kevin McCarty is a true American.