AIG

[RIJIMMY]

another one for the morons. Great idea, but err, arent their bonuses ALREADY taxed, duh!!!
Democrats - you need AIG more than AIG needs you. I wish their employees organized and said FU and stayed home. Wanted to see how much money wou;d be lost in one day?

WASHINGTON (CNN) -- Sen. Christopher Dodd on Monday suggested a tax provision to recoup the bonuses for executives of ailing insurance giant AIG.


Sen. Chris Dodd said the government could apply a tax to the AIG bonuses.

1 of 3 Dodd, D-Connecticut, said the notion is in the "earliest of thinking" and has not been settled on as a way to resolve the issue, which has set off outrage in Washington and across the country.

The tax would apply only to those at AIG who have received bonuses. The provision would help the government get back the money in the form of tax revenue.

[fishbones]

Originally Posted by RIJIMMY

another one for the morons. Great idea, but err, arent their bonuses ALREADY taxed, duh!!!
Democrats - you need AIG more than AIG needs you. I wish their employees organized and said FU and stayed home. Wanted to see how much money wou;d be lost in one day?

WASHINGTON (CNN) -- Sen. Christopher Dodd on Monday suggested a tax provision to recoup the bonuses for executives of ailing insurance giant AIG.


Sen. Chris Dodd said the government could apply a tax to the AIG bonuses.

1 of 3 Dodd, D-Connecticut, said the notion is in the "earliest of thinking" and has not been settled on as a way to resolve the issue, which has set off outrage in Washington and across the country.

The tax would apply only to those at AIG who have received bonuses. The provision would help the government get back the money in the form of tax revenue.

Dodd's notion is in the "earliest of thinking"? Doesn't seem like there's much thought to it at all. You're right, Jimmy. Bonuses are taxed. They're taxed at a much higher rate than normal pay because the tax is progressive. It's good to know that Dodd has a career in politics because he wouldn't get by very well in the real world.

I also read this morning that Geitner might be coming under some fire for the bonus fiasco. There's some talk that he was aware of the AIG bonuses and didn't mention it to anyone. If that's true, he's off to a bit of a rough start.

[spence]

Originally Posted by fishbones

Dodd's notion is in the "earliest of thinking"? Doesn't seem like there's much thought to it at all. You're right, Jimmy. Bonuses are taxed. They're taxed at a much higher rate than normal pay because the tax is progressive. It's good to know that Dodd has a career in politics because he wouldn't get by very well in the real world.

A bonus is taxed just like income when you file your return, it's the withholding that's usually taxed at a higher rate as the calculations typically assume you're going to be earning that extra money every period...or it's a flat rate that's often higher than your regular tax rate.

Generally speaking, most people don't really care unless you're trying to defer tax payments or you really need the cash.

-spence