Webb Wants One-Time Tax on Executive Bonuses

Bill Bartel · The Virginian-Pilot · Link to Article

The proposal by Webb and U.S. Sen. Barbara Boxer, D-Calif., would collect the tax on bonuses larger than $400,000 that were paid in 2009 by companies that received at least $5 billion from the $700 billion federal bailout - known as the Troubled Asset Relief Program, or TARP.

The bailout was approved by Congress in late 2008.

If the one-time bonus tax is approved, it would affect executives of the following firms: AIG, Bank of America, Citigroup, Fannie Mae, Freddie Mac, General Motors, GMAC, Goldman Sachs, J.P. Morgan, Morgan Stanley, PNC Financial, Wells Fargo and U.S. Bankcorp, according to Webb's office.

The affected bonuses would include stock options as well as cash, under legislation that was first proposed by the two senators in early February.

If approved, the amendment would be added to a $149 billion jobs bill now being considered by the Senate. The measure includes provisions for extending some tax credits.