Washington, DC - Congressman John D. Dingell (D-MI15) today introduced the “Responsible Corporate Executive Compensation Act of 2009,” which would make bonuses to employees of companies receiving funds from the Troubled Assets Relief Program (TARP) subject to a 95 percent tax.  The American International Group (AIG), which has received $170 billion in TARP funds, is awarding $165 million in employee bonuses.

“This legislation sends a clear message that excessive compensation practices by TARP-recipients are indefensible and, as such, must be heavily penalized.  It is unconscionable that companies dependent upon the largesse of the federal government for their very existence should in turn pay the very employees partially responsible for our current calamity such irresponsibly exorbitant bonuses.  From their glass towers, they frittered away our nation’s economic well-being.  These scoundrels picked the cash right out of the retirements and college funds of America’s workers to pay for a wild investment experiment.  Compare that to the men and women who work on the assembly lines now being asked to give back portions of their hourly wage - also guaranteed by a contract - to justify the rescue of manufacturers. If we can demand that decent people who wear hard hats and blue jeans must renegotiate their contracts, I see no reason those bad actors wearing neck ties and $1,000 suits should be protected from helping their country in this time of need.

“We’ll honor their contracts, but we’ll also ask them to pay for the mess they helped create - a mess that unfortunately only the federal government and taxpayer dollars can fix.

“80 percent of AIG is owned by American taxpayers and I think they’ve made it abundantly clear the last few days how they feel about these bonuses.  They are telling us that they want their money back.  It is time we make sure their wishes are carried out.  Whatever the business getting help, we in Congress must make sure we are in the business of good government that represents the interests of all of the American people.”