However, he is dead wrong in his assertion that we need to take those bonuses back from people. These bonuses were snuck in, but they were by contract already in the contracts of AIG's workers. In America, we honor contracts. In America, word is bond, even if the deal sucks. In America, if we make a mistake, we fix it next time and suffer the current consequences. Mr. Boehner, you in this grandstanding ploy of seeking to get the bonuses back, are not answering the questions you raise in your opening remarks in this video:
Mr. Boehner, you talk about the irresponsibility of your brothers in Congress. Why don't we get some of their salaries back? Why don't you all give back some of your money? Why doesn't the administration? Quit quibbling over who would have done a better bill and instead inquire about this shadow insertion in the stimulus bill. Instead of seeking to capitalize on the moblike rage against AIG, why not seek to do more to educate Americans and hold yourselves in the Congress accountable. Bizzyblog has more:
That said, I totally disagree with the Boehner’s proposal to take 100% of the bonuses back, for three reasons:
* One, a deal is a deal, and to the extent these bonuses were supported by contracts, changing them after the fact will introduce even more uncertainty into the economy about how solid any and all contracts are. That said, if the contractual language is as clear as I understand it is, bonuses should be retrieved from those AIG execs who contractually promised to stay and then, once the direct deposits were made, took the money and ran. Though obviously larger amounts are involved, this is is no different than forcing an employee inadvertently overpaid by a company’s payroll system to give back the amount mistakenly paid. My understanding is that an employee who tries to hang on to the money in this kind of situation can be criminally prosecuted for theft if they balk at repaying. Again, if the contractual language is ironclad, the AIG execs who took the money and ran also committed theft — very grand theft.
* Second, retroactive targeted taxation of legally completed transactions under laws that existed at the time of those transactions is, or certainly should be, illegal.
* Finally, as a political move, letting the bonuses stand — which I believe is the only legally defensible option anyway — would create ammunition opponents can use against any and all congressmen and senators who supported the stimulus monstrosity. Those who voted for the bill agreed to allow the AIG bonuses to be paid because they didn’t read the bill. This happened because they didn’t insist on having the time to read the bill. Plainly stated, they didn’t do the job they were elected to do, and they richly deserve to be stuck with the political consequences of that dereliction of duty. It is all on them. They shouldn’t be given cover, as Boehner is doing, by agreeing with the idea that pulling back any of the legally paid and keepable bonuses is okay. It isn’t.
Look, shame the Democrats who overwhelmingly passed this bill without reading it. Shame the thug, incompetent, moronic President who signed this bill, then acted outraged when the bonuses were paid PER THE LANGUAGE IN THE BILL!!!! However, don't seek to destroy confidence in the people with their contracts and such by retroactively taxing things. Admit the mistake, hold those who did it accountable, and make sure it doesn't happen again. The political grandstanding for seeking who can be the most harsh on AIG execs just doesn't wash, and is akin to joining in the mob mentality of demonizing people and leading to the harassment discussed in this article.
However, John Boehner came out righteously swinging on the Kilroy resolution yesterday as well:
IS THIS THE “NEW ERA OF RESPONSIBILITY” PRESIDENT OBAMA PROMISED?
March 19, 2009 | House Republican Leader John Boehner (R-OH) | Permalink
The Democrats’ half-hearted attempt to recover some of the AIG executive bonuses a year or more from now is receiving the bulk of the attention on Capitol Hill today, but Democrats are quietly trying to sneak through a second measure intended to absolve themselves of their guilt in the AIG executive bonuses fiasco. The resolution – sponsored by Rep. Mary Jo Kilroy (D-OH), who voted TWICE this week to kill a bill by Rep. Erik Paulsen (R-MN) that would have recouped 100 percent of the taxpayer-funded bonuses paid to executives in the Democratic AIG fiasco – declares that all of the actions taken by the President, the Secretary of the Treasury, and Congress to date with respect to issues of executive compensation have been the correct actions.
Seriously?
Over the last several days, Washington Democrats have engaged in a virtual circular firing squad as they attempt to pass – and dodge – blame for this mess. Now that the smoke is beginning to clear, here’s what we know: someone inside the Obama Administration asked Democratic leaders on Capitol Hill to change the trillion-dollar “stimulus” spending bill to allow the AIG executive bonuses. In other words, responsibility for this free-for-all lies at the feet of the very people scrambling to provide themselves political cover. How convenient.
Furthermore, the Kilroy resolution raises some more fundamental and, frankly, troubling questions about where responsibility lies in Washington on matters of executive compensation – and lawmaking generally. For example:
· By voting yes on the Kilroy resolution, does it mean it is the sense of Congress that the President of the United States does not have a responsibility to know what is in the legislation he’s signing? After all, he signed the “stimulus,” which allowed the AIG executive payments. If the buck stops with him, as he affirmed yesterday, does this resolution imply otherwise?
* By voting yes on Kilroy resolution, does it mean it is the sense of Congress that the Secretary of the Treasury and the Administration were correct in failing to act when they learned of the AIG bonuses would be given out? After all, Secretary Geithner told congressional leaders he learned of AIG bonuses only on March 10th, but the Federal Reserve informed the Treasury about the bonuses on February 28th – that’s 10 days before Treasury staffers said they learned “full details” of the bonuses and three days before the new $30 billion cash infusion went to AIG.
· By voting yes on Kilroy resolution, does it mean it is the sense of Congress that Secretary of the Treasury was correct in failing to tell the President that this AIG giveaway was in the bill? After all, we’ve learned that a Treasury official is the one who asked Democratic leaders to include language allowing the AIG bonuses.
· By voting yes on Kilroy resolution, does it mean it is the sense of Congress that House and Senate Democratic leaders were right to rush a vote on the stimulus bill without giving the American people, including the President of the United States, adequate time to read the bill? After all, House Republicans called for the bill to be posted online for at least 48 hours, but Democrats rejected the request – spurring House Republican Leader John Boehner (R-OH) to drop the bill on the House floor in disgust.
President Obama speaks of the “new era of responsibility” in Washington – rhetoric that congressional Democrats are happy to repeat as often as possible. The sad fact is, the Kilroy resolution makes a mockery out of it. Instead, it is meant to absolve Washington Democrats of their responsibility for allowing the taxpayer-funded executive bonuses. The American people deserve better than this. They deserve better solutions – such as the GOP bill rejected by House Democrats TWICE to get 100 PERCENT of taxpayers’ money back IMMEDIATELY. Unfortunately, Washington Democrats aren’t providing them.
Republican Leader Press Office
Rep. John Boehner (R-OH)
H-204, The Capitol
(202) 225-4000
http://republicanleader.house.gov/
