Obama did something cool

[Kurt_and_Hunter]

He submarined the bonus tax bill, correctly identifying it as being at odds with the spirit and best traditions of our Constitution.

It was on TV. I wasn't clear whether it was from the 60 Minutes interview. It was in the intro to a Lawrence Tribe appearance on MSNBC on what's up with the bill. (Tribe was on agreeing that it is something too much like a Bill of Attainder.)

Anyway, Obama didn't promise to veto the thing (which seems unlikely), but I appreciate that he at least acknowledged the thing is generally anti-American so that's a start. (And will presumably be siding with those who will seek to neuter the bill in the Senate)

[Cha]

1. Thanks for reporting that K&H..

there's so much info going around but that's a good thing to know.

[Aloha Spirit]

2. In the 60 minutes interview, yes, he said that you shouldn't use laws to single out a certain group

of people, and that you shouldn't use the tax code to punish people.

That interview was classic.

I hope that, as a result of laughtergate or whatever, many more people go back and watch it at least.

[RUMMYisFROSTED]

3. Was a governmental action taken?

[Kurt_and_Hunter]

4. Not yet, that I know of. I don't think the Senate has even taken it up

Passed the House.

Presumably the Senate will wait until it cools of some.

(As is their traditional role.)

[ProSense]

5. He did no such tihing.

Obama said he would look at it carefully.

Doesn't stop the media from spinning:

On Sunday, Obama told CBS's "60 Minutes" the House's plan to slap a special tax on the AIG executives would be unconstitutional. Borrowing a line from his Feb. 24 speech to Congress, he said he would not "govern out of anger."

link

The legislation is Constitutional

[Frank Booth]

6. I hope someone stops it. This would set a horrible precedent.

I hate to break it to people, but it's very possible the ship already sailed on the AIG bonuses. Despite what some commentators say, contractual obligations actually mean something. From what I've read about the bonus contracts they're pretty cut and dry. So, if AIG were to try to renege it would certainly get sued and most likely lose. In addition to having to pay the full amount of the bonuses, some states award extra damages on failure to pay wages, and AIG would also have to pay its own lawyers and possibly the plaintiffs' lawyers as well.

The anger directed at Obama's administration on this issue is completely misguided. Instead of looking at $165 million wasted on bonus payments, we could be looking at $500 million wasted on bonus-related payments.