Congressman Dave Loebsack voted today on legislation to recover taxpayer dollars by holding companies, including American International Group (AIG) and other companies receiving billions in taxpayer dollars -- accountable for the bonuses that were paid to their executives.  

“This bill will impose a new 90 percent income tax on bonuses taken by employees whose companies have received tax payer dollars to keep from going under,” said Congressman Loebsack. “I was an original co-sponsor of this bill because it sends a clear message to greedy corporate executives – the ATM is closed. Stop abusing tax payer dollars and stop mismanaging your companies, the people of Iowa are not going to keep footing the bill for your mistakes.”   

After receiving more than $170 billion in taxpayer funds, AIG paid $165 million in retention payments to executives. The top recipient received more than $6.4 million and more than 73 of these executives were paid over $1 million in retention bonuses.  After receiving their retention bonuses, at least eleven recipients left the company.  

The bill would impose a new 90 percent income tax on bonuses received by individuals from companies which have received over $5 billion from TARP. It would also apply to bonuses paid by Fannie Mae and Freddie Mac. This tax would apply to retention payments, incentive payments, or other bonuses from these companies received after December 31, 2008.