Monday, March 16, 2009

Why Should We Be Surprised?

Why is everyone reacting with shock and surprise when Bail-Out Recipient AIG execs were paid over $165 million in bonuses?  AIG's mismanagement was rewarded, so what other lesson would they learn?  Screw up - get bailed out - screw up again.  It's just business as usual.  If any corporation or individual has been foolish with their assets, they should experience the consequences (fail), learn the lessons, and proceed again in a wiser fashion.  Quit bailing out the losers!  But when you do, don't be surprised at what they do next.

One thing that concerns me greatly, though, is that there is talk in Congress  to tax the AIG exec's bonuses - even as much as 100%.  As much as I think AIG's actions have been deplorable, setting the precedence of taxing bonuses at 100% is dangerous.  It opens up a whole Pandora's box of new taxes on honest people.

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