A Chilling Harbinger: Confiscation as Taxation

The American Thinker ^ | March 23, 2009 | J. Robert Smith

[Scanian]

Congress' lopsided vote on Thursday to tax AIG executives' bonuses at no less than 90%, and to apply the same to other bailout recipients, undermines Constitutional and contract law and is a clear abuse of power. Americans who applaud this act may want to think twice. If Congress is willing to break the law to confiscate these executives' bonuses, what will stop it from extending legislation to those who receive no government bailout money?

You may say that's absurd. This is a special case. Congress is merely recovering taxpayer money from ill-managed and profligate enterprises. But Charles Krauthammer writes:

"[T]here is such a thing as law. The way to break a contract legally is Chapter 11. Short of that, a contract is a contract. The AIG bonuses were agreed to before the government takeover and are perfectly legal. Is the rule now that when public anger is kindled, Congress will summarily cancel contracts?

"Even worse are the clever schemes being cooked up in Congress to retrieve the money by means of some retroactive confiscatory tax. The common law is pretty clear about the impermissibility of ex post facto legislation and bills of attainder. They also happen to be specifically prohibited by the Constitution."

Consider this: What have we witnessed over the past one hundred years, the advance or retreat of the national government? The national government has grown beyond anything the Founders envisioned. Its tentacles stretch into virtually every facet of our lives. Its heavy hand is felt on businesses, big and small. It dictates to automakers mileage standards. It meddles in doctor-patient relationships.

[Son House]

Yep, the highest tax rate Congress and the President pass to Americans and Business, should also apply to Congress and the President with no write offs, including retro-activity

[17th Miss Regt]

"[T]here is such a thing as law. The way to break a contract legally is Chapter 11. Short of that, a contract is a contract.

Mr. Krauthammer, do you really believe a contract is still a contract? After the housing crisis 'resulution'??? This is a brave new world! The law applies only to saps now.

[FormerACLUmember]

The Constitution specifically prevents the AIG Confiscation Law (or whatever the crooked democrats are calling it).

Of course, once Obama packs the courts with utterly corrupt, oops I meant “activist,” judges that pesky Constitution and Rule of Law will be less of a problem.

[Scanian]

I think this is a “too smart by half” PR move, something like McCain-Feingold. Congress probably expects the courts to overturn the law but they might be in for a surprise the way McNasty and his bi-partisan buddy was.

[gondramB]

>>The Constitution specifically prevents the AIG Confiscation Law<<

In what way?

[FormerACLUmember]

If enacted into law, the bill would certainly be challenged as a “bill of attainder” - a legislative act designed to punish an individual or well-defined group of individuals without a trial.

The AIG Confiscation Law is also an illegal ex post facto law.

[Graybeard58]

The Constitution specifically prevents the AIG Confiscation Law (or whatever the crooked democrats are calling it).

Shamefully, a lot of moron republicans voted for it too.

[BlessingsofLiberty]

I was going to say the Supreme Court will be the final word on this matter....but it is so blatantly unconstitutional, I don’t think it will get that far.

[lucky american]

So, if your company takes bailout money to build something (roads, bridges} and you get a $500 dollar Christmas bonus from your company like you do every year,but because they took bailout money, don’t you think that you will be taxed 90% as well? Slippery slope here.

[wastoute]

ANybody still think there is "no way" they would confiscate 401K money?

Molon Labe!

[gondramB]

>>If enacted into law, the bill would certainly be challenged as a “bill of attainder” - a legislative act designed to punish an individual or well-defined group of individuals without a trial.

The AIG Confiscation Law is also an illegal ex post facto law.<<

If they apply it to everyone who takes billions in bailout money, I doubt you will get much sympathy saying the constitution prevents us imposing limits on how they use that money.

[Little Ray]

It never fails to amaze me.
Year after year, for DECADES the Federales have run a deficit. Yet Congresscritters gleefully vote themselves raises, perks, medical benefits and truly awe-inspiring retirement benefits.

A company pays its people per contract and they go beserk.

Go figure.