Larry Summers: Stop the AIG Bonuses. Yes you can.
Treasury Secretary Tim Geithner should direct the Commissioner of Internal Revenue to challenge the AIG bonuses as unreasonable compensation under the Internal Revenue Code. Finding the AIG bonuses to be unreasonable compensation would render them nondeductible for federal tax purposes, and would strengthen potential shareholder derivative suits to recapture The Great AIG Giveaway.So, instead of the money going out in bonuses, it's going to go straight into lawyers' pockets to cover the expenses incurred when AIG defends itself?
Well, If America is going to use taxpayer money to ultimately fund attorneys (even more than they already will be), may I humbly suggest that we just cut out the middleman? If I must have my (stolen!) tax money go to an attorney, then I humbly suggest we write a check to Hugh Hewitt, and one to Glenn Reynolds. (shouldn't forget Ron Coleman).
Wouldn't -that- be the Mother of All Hits to the tip jar? Hey, you've got Griffon to thank for that one, guys! Love ya!
Again, we have some pogue missing the forest for the trees. AIG giving money out in bonuses is not the issue here. It's the fact that no taxpayer money should have ever been put in a position to be used this way! How about we rescind the rest of the bailout? Stop throwing good (stolen!) money after bad!
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