Opinion

Felix Salmon

The Bonus Surtax

By Reuters Staff
March 17, 2009

Chuck Schumer wants to tax "virtually all" of the bonuses being paid to AIG employees. The surtax being proposed by Gary Peters is 60%; presumably that comes on top of the regular federal income tax. But why stop there? If you set the surtax at, say, 150% of all bonus payments, then that would pretty much guarantee that the recipients would decline to receive them. Seems like an elegant solution to me.

Reprinted from Portfolio.com

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