Pingaroonie... :-)
oops. And the circus continues.
Now THAT would be Hilarious since I’ll bet MOST of them VOTED for Obama and the rest of the Democrats!!
Not sure you’re using the proper analogy. If the money is returned it means it’s been rejected; not given as a gift. One cannot tax income that’s been rejected, as far as I know.
Take a corporation facing hard times. It presents a wage increase to an employee. That employee rejects the increase to help the business. Is he then taxable for that non-existent additional income?
Aww, they’ll likely just give it the “tim geithner” treatment...
Good catch.
You could if the recipient of the gift was a not-for-profit, charitable entity. In this case, AIG certainly isn't.
What's more interesting, is that I'm sure these men and women are keenly aware of that fact. It's their job after all.
This is a fairly well-known principle of tax liability, and yet, I haven't seen it mentioned anywhere, by any media outlet. It begs the question, are they that stupid, or are they just supporting a political narrative in which they believe so deeply.
Of course they are, they received the compensation, it was there choice in how they dispose of it.. Now, for example, one regional manager gets a $1Million bonus, then gives it back, he still has to pay $900k in taxes...
A comedy of errors is right.. just wait until Big Brother decides he doesn't like what business you are in..
Otherwise it's hearsay.
A bonus isn’t considered income.
And then the recipient of the give-back will have to pay gift tax . . .
Wouldn’t they have to pay tax twice anyway? First the 90% tax, and their AGI at the end of the year would reflect their bonus which would result in the income getting taxed again, in which case, if the money wasn’t returned, they wouldn’t have income to pay for the second tax. Unless they are allowed to claim exemption on the bonuses because they were already taxed, but then you would hear of public outrage about the AIG execs getting exemptions on their bonuses (even though they already have been taxed)
Not sure where I was going with that...
If i was them I would not give the governemtn one single dime
I think this 90% tax will never be implemented, and unless I was worried about the NY Attorney Generals EXTORTION threat to release my name to the public, I would tell them to go F*** them selves.
Not only did they not do anything illegal, the DEMOCRAPS IN CONGRESS specifically ADDED WORDING IN THE LEGISLATION TO SAVE THESE BONUSES
No good deed goes unpunished and all that.
What about this...
They get taxed on the income because they can’t gift it away.
AIG gets taxed again on it as business income!
Just one more reason to abolish the income tax and the IRS!
Too bad they don't all band together to fight this bill of attainder or fight it on the basis of the unconstitutionality of this targeted punishment by taxation.
At least they would have "standing" in the lower federal courts on up to the SCOTUS because they are the victims.
Although, if the Obama birth certificate legal battle is any indication, not too many individual U.S. citizens or organizations have the luxury of enjoying "standing" in the eyes of federal liberal judges.
Leni
You are correct about giving it back, but I believe the affected AIG execs are opting to renegotiate their contracts...meaning they will not be receiving the money in the first place.
Your dad’s recollection would be true were the gift to another individual; however, a gift to a government entity, much like a gift to a charity, usually is deductible. (although it’s subject to enough limitations and carry forward rules to make the AIG folks wish they had never been born)
The only people that care about this bonus money are Obama followers.