Friday, March 20, 2009

AIG, bonuses, taxes...

AIG has been giving out bonuses to their employees. With the money our so generous government gave them. Gave them. And now that same government is throwing a fit over it. Yay.

Now, they're taxing the life out of the businesses because of these bonuses. Yeah, that's smart.

Let's have an economics and business class here folks.

The government taxes the salaries AIG and like companies give to their employees. Lots of money. It doesn't, however, tax the bonuses the companies give their employees. So, AIG gives their people contractual bonuses.

Sorry, Mr. Obama, Mr. Frank, and all you other splendid budgeteers in Washington...but you gave them the money. You said- "Here, we know you're in trouble (or at least, you think you are), we know you messed up, but here ya' go. Have fun with it, and get yourselves out of trouble."

Well, now AIG is getting themselves out of trouble. Let's think about this a minute.

If AIG were not to pay the bonuses- bonuses that are contractual, and hence must be paid- then their workers would leave.

That would complicate our unemployment problem, cause AIG to lose money, and require more taxpayer funds to 'bail' them out. Again.

So...we give them money, and then don't let them do with the money what they will? What? Last I checked, a gift (even a gift from the government) came without preconditions. Maybe I'm missing something in the fine print of the technicalities of the 'stimulus' here, but it still doesn't make any sense to me.

I wish AIG all the luck in my position in their lawsuit. They're going to need it.

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