Maybe Goldman traders should put off buying those Ferraris (the two for the price of three special will be back) for at least a few more days: Congressman Kucinich has announced that even after his proposed amendment to HR 4173 to tax TARP recipients was shot down, he "will be introducing legislation based on the amendment that [he] offered, that will pave the way for a more fair and just tax treatment of absurd bonuses in the financial industry."
It will be useful to see if the vote goes once again along party lines, in which case the banana republic nature of America will truly shine, as republicans and democrats finally confirm they have terminally flip-flopped on all issues pertaining to Wall Street, even as Main Street anger over banker compensation continues rising. If this proposal gets voted on, Democrats, who will likely once again vote it down, stand to reap the full fury of over 300 million Americans, who will realize that the Democratic party now holds banker remuneration and bonus concerns closer to its heart than those of small and medium-sized businesses (let along Joe Sixpack). And in that case, watch out come mid-term election time. Now if only Bernanke's reappointment can be stalled for another year, there just may be a little hope for capitalism yet.
From Kucinich' website:
Department of General Services (www.dgs.ca.gov) serves as the business manager for the State of California, with more than 4,000 employees and a budget in excess of $1 billion. DGS helps state government better serve the public by providing services to state agencies including innovative procurement and acquisition solutions, creative real estate management, leasing and design services, environmentally friendly transportation, and architectural “Today, Goldman Sachs bowed to public pressure and promised to suspend bonus payments to its top executives. It’s important to understand this in perspective. Goldman did this only in the face of deafening public criticism over bonus payments to bankers.
“Once the uproar subsides, executives throughout the financial services industry will return to the same practice of showering themselves with outrageous compensation packages and bonuses.
“We need to reform fundamentally our tax code so that we don’t have to rely on extraordinary public outcry to curb such excessive behavior.
“I offered a commonsense amendment to HR 4173, the Wall Street Reform and Consumer Protection Act, that would have taxed the bonuses of executives at TARP recipients, as well as the profits reported by these institutions. My amendment simply acknowledged that without the extraordinary actions of the federal government, many of these institutions would have collapsed a long time ago, and it would have held to account those individuals that made the decisions and that led to the crisis.
“Unfortunately my amendment was not accepted by the Rules Committee. Soon I will be introducing legislation based on the amendment that I offered, that will pave the way for a more fair and just tax treatment of absurd bonuses in the financial industry.
“Leaders in Great Britain and France have recently announced proposals to tax the bonuses of financial executives--if the United States remains silent on the issue, we will in effect be leading the world in a ‘race to the bottom’ of international efforts to regulate the financial services industry.