The secret is out. There is no denying it. Congress uses the tax code to punish wage earners. Taxation is a punitive tool in the hands of a government that punishes the successful.
I have not followed the news very closely this past week being out of town, but I have caught bits and pieces of the AIG fiasco. The uproar occasioned by the bonuses received by AIG officials is unnecessary. The government should have never bailed them out with taxpayer money and then there would not be a scandal. If they want to run their business into the ground let them have at it.
With the infusion of taxpayer money the people are outraged.
Actually two thing about this.
1. It would be nice if people were as outraged concerning the incompetence at all levels of government particularly the federal level. Congress just gave themselves a raise even though their approval rating stays abysmally low.
2. The House rushed to pass legislation to tax the bonuses at I believe the rate of 92%. For ever dollar of bonus the federal government gets $.92! If what AIG is doing is unthinkable what Congress is attempting to do is despicable. The tax code is not to be used for the purpose of punishing or controlling behaviour but it is used for just those purposes and this is a glaring example of it. It also proves my point that with the introduction of an Income Tax with the adoption of the 16th amendment to the Constitution our entire income belongs to the federal government. The tax code does not determine what they collect it determines what they let us keep.
They are attempting to confiscate almost all of the bonuses of these AIG officials. They have been so successful in creating class envy and manipulated the people so effectively that most are delighted at this punitive tax failing to realize that they are sanctioning the confiscation of income by the federal government. If they can take 92% of their bonus they can take 92% of your income. So, all us poor folks refuse to defend the the AIG officials against this abuse of power and when they come after your income there will be no one left to raise objection because all of the rich and powerful folks that they have conditioned us to hate will be poor like the rest of us, and finally all power will be in the hands of politicians. Only then will some people realize what they have invited upon themselves and their children. Tyranny is an ugly thing.
I know you say the folks at AIG don't deserve the money. Does the federal government? Personally I would rather these individuals have it than Washington.
It was the Supreme Court in 1819 in McCulloch v. Maryland that wrote "The power to tax involves the power to destroy."
In the words of the late Paul Harvey, "Good Day."