Democrats put language in the ‘Stimulus Bill’ to protect AIG executive bonuses. Dodd and Obama were the number one recipients of money from AIG. Distraction in full swing & Congress’ plan to tax the bonuses at 100% wont pass constitutional muster. – UPDATE: Shep Smith goes off on Congress.
Posted by iusbvision on March 17, 2009
[Before we get in to the goods one thought; what would be the reaction by the Democrats and the elite media be if Bush was still president. – Editor]
This issue is a big distraction and being milked by both sides; but before we get to that lets get to the big news.
Chris Dodd was for the executive bonuses before he was against them.
Senator Chriss Dodd, who was also the number one recipient of campaign cash the corrupt mortgage industry and the member of Congress most responsible for blocking mortgage industry reform since 2001, is also the number one recipient of cash from AIG taking in $103,100 in the 2008 election cycle alone with Barack Obama taking in $101, 332. Like the defunct mortgage industry, AIG gave over three times the donations to Democrats than to Republicans – LINK.
The Wall Street Journal reports that Senator Dodd’s chances for reelection is in jeopardy.
Democrats inserted the language specifically allowing this in the ‘Stimulus Bill” while Republicans were locked out of conference negotiations, it was called the Dodd Amendment; he first denied this and now admits it and now is trying to spin his way out of it.
While the Senate was constructing the $787 billion stimulus last month, Dodd added an executive-compensation restriction to the bill. The provision, now called “the Dodd Amendment” by the Obama Administration, provides an “exception for contractually obligated bonuses agreed on before Feb. 11, 2009” — which exempts the very AIG bonuses Dodd and others are now seeking to tax.
Ok so they sneaked it in and got caught, so the outrage and threats to tax those bonuses at 100% is a show for the press and for you and me. Why?
1. The bonuses are a part of legal contracts so if AIG doesn’t pay them they will be taken to court and forced to pay the bonuses as well as punitive damages and other fees.
2. The Constitution of the United States prohibits the government from interfering with a legal contract. The argument can be made that taxing those bonuses at 100% or a very high rate is an effort to get around that constitutional restriction and they would be right.
3. The Constitution prohibits what are called “Bills of Attainder”. A bill of attainder is a law passsed by congress to punish an individual or a group of people are an imagined crime or wrong doing. This violates a right to a trial and due process of law. Making a special tax for those bonuses now is a bill of attainder and the courts are not going to stand for it.
4. The only way to really solve this is to make new laws for the future or for the industry to reform itself.
Those bonuses are likely to stick and any attempt by Congress to take that money is almost certainly doomed to fail in court. Congress knows this, but like the Rush Limbaugh smear story, the Rick Santelli and Jim Cramer smear stories, these cat fights are distractions that keep the real news from getting to you.
Now both sides are trying to “out outrage the other”. Republicans are talking up outrage against AIG when they should be outraging at Democrats who helped to make sure this could happen with the language in the Stimulus Bill. The mortgage industry scandal shows us that much of the Democratic Party leadership is in Wall Street’s back pocket and this scandal is just more reason to come to that conclusion.
Michelle Malkin comments HERE.
UPDATE – Video: Shep Smith goes OFF on this pure show and deception & tells you what we have told you from minute one.
As we told you this AIG media and political frenzy is about two things, a distractions that the Democrats screwed up, and a distraction from the fact that Democrats have been getting money funneled back to their campaigns from AIG, Wall Street firms and the mortgage industry. The video:
UPDATE II – CBS news decided not to mention the Dodd Amendment in its coverage…is anyone surprised? – LINK