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!