AIG

Yesterday, freshman Congressman Blaine Luetkemeyer said that taxpayers need to get their money back from AIG executives:

“Taxpayers deserve better than this from their government, and that is why I am supporting a bill that moves quickly to return taxpayer dollars from the clutches of AIG executives.”

Twenty four hours later, when given the chance to literally "return taxpayer dollars from the clutches of AIG executives," he voted no.  Try to follow his logic here:

I am also extremely troubled that this bill opens the door for selective government taxation of individuals, which is constitutionally questionable at best. I co-sponsored legislation to force 100 percent of the money to be paid back immediately, but the majority – the ones that allowed this situation to happen in the stimulus – is now trying to recoup only 90 percent of the money.

Luetkemeyer couldn't support the bill because it would take money from just AIG executives. And also because it wouldn't take enough.

Oh, and he wants everyone to know that it's all the Democrats' fault. There's that too.

The House of Representatives just voted to impose a 90 percent income tax on $165 million in bonuses distributed to AIG. The measure passed 328 to 93. Representatives Akin, Graves and Luetkemeyer all voted to preserve the AIG bonuses.

Seriously.

Here's the summary from Politico.com:

The measure would impose a 90 percent tax on any bonuses paid to top executives at these firms after revelations that AIG paid its executives $165 million in bonuses this year.

The Senate is operating on a parallel track this week crafting a heavy surtax on virtually all bonuses for employees at companies that received federal bailout funds.

The legislation would affect any financial firm receiving more than $5 billion in federal funds from the Troubled Asset Relief Fund. It would only pertain to employees whose total family income exceeds $250,000 per year, and would cover all bonuses received after Jan. 1, 2009.

Good luck trying to explain this one, boys.

Update: While Roy Blunt voted to return much of the bonus money to the company's owners (you know, us), he did so very reluctantly. 

• Outrage with AIG is overflowing. Russ Carnahan and others are pushing legislation to recoup bonuses from bailout firms. [Post-Dispatch] [CNN][CQ]

• Treasurer Zweifel struck a deal with bankers to increase the interest rate banks pay for state time deposits. Under the agreement, banks would gradually phase in the payment of competitive interest rates for state deposits. At the same time, the state’s linked deposit program, which loans money through local banks at low interest to small businesses, will grow to serve companies of 100 or fewer employees. [Daily Tribune]

From PenroseOnPolitics.

The WSJ has a good summary of the AIG insanity here.