The most flagrant abuses of the Tax Code in American history.

The U. S. House of Representatives has passed and sent to the Senate a bill to levy a 90% tax on the bonuses the executives at AIG recently received.

The U.S. Constitution provides, in Article I, Section 10, that “no State shall enter into… any law impairing the obligation of contracts.” The Impairment of Contracts clause of the Constitution applies directly only to the states, not the Federal government, but there is a huge body of case law that has applied the concept to various Federal actions. Moreover the action also collides with federal statutory law, which protects all persons’ rights to make contracts and to sue in U.S. courts, at 42 U.S. C. §1981. Read More

Your Washington lawmakers at work!

LINKS:

(1) Look beyond the bogus bonus smokescreen

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2 comments on “The most flagrant abuses of the Tax Code in American history.

  1. Gee, this should be good for business. Nullifying contracts, 90% tax rates, an effective ceiling on the remuneration employers can give their employees.

    Even if this stunt were legal, it would be nuts. We are not ruled by serious men and women. The Kenyan Teen, Granny Rictus, Barney the Gay Dinosaur … these are clowns. Clowns.

  2. I see a bunch of lawyers making more money fighting this case in the courts than the bonuses!

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