As quickly as they could, the Democrats in the House passed a bill to slap punishing taxes on AIG bonuses. The bill imposes a 90% tax on these bonuses that were contractually guaranteed to AIG employees. These same contracts that both Congress and the President knew about for some time. Bonuses that Senator Dodd made sure to exempt in his amendment that was included in the Porkulus Bill. Guess somebody should have read that monstrosity. Now it appears Congress thinks they can make everything alright by taxing these bonuses to death. Talk about an over-reach.
What is even worse is that this move is quite unConstitutional. Article I Section 9 of the Constitution describes the limits on Congress although they obviously believe they have none. One stipulation reads as “No Bill of Attainder or ex post facto Law will be passed.” Here is what ex post facto means:
ex post facto adj. Formulated, enacted, or operating retroactively. [Med Lat., from what is done afterwards] SIn U.S. Constitutional Law, the definition of what is ex post facto is more limited. The first definition of what exactly constitutes an ex post facto law is found in Calder v Bull (3 US 386 ), in the opinion of Justice Chase:
1st. Every law that makes an action done before the passing of the law, and which was innocent when done, criminal; and punishes such action. 2d. Every law that aggravates a crime, or makes it greater than it was, when committed. 3d. Every law that changes the punishment, and inflicts a greater punishment, than the law annexed to the crime, when committed. 4th. Every law that alters the legal rules of evidence, and receives less, or different, testimony, than the law required at the time of the commission of the offense, in order to convict the offender.
The members of the House are sworn to unhold the Constitution! And not only that, but both Dodd and Frank should be impeached immediately for their hand in this housing crisis and for their further actions. Those that doth protest so much are obviously hiding something. And keep in mind, no matter how angry you may be at AIG over these bonuses, if they can do it to them then they can do it to you.