AIG’s latest action in bonuses towards their executives is sending shock waves across Washington. Seventy-Three executives from AIG’s financial services unit (the unit which engineered the companies down fall) all just received bonus checks for a one million dollars or more. Seven of them received more that 4 million dollars each, including one person who received more than 6.4 million. “To me, the thought of it is repulsive,” said Senate Majority Leader Harry Reid.

     The revelation came about from a letter Attorney General Andrew Cuomo sent to Representative Bobby Frank. However, AIG calls the bonus retention payments and says they are vital for holding on to top talent, even though Cuomo’s letter also reveals that “Eleven of the individuals . . . are no longer [even] working at AIG . . .” Now a slew of lawmakers have introduced bills which would tax the 167 million in bonus at 90 or even 100%. “For those of you who are getting your bonuses, be forewarned. You will not be getting to keep them,” said Senator Charles Schumer. Senator Amy Klobuchar said “I don’t like to see taxes raise, however in this instance I think all of us can make an exception.” A bipartisan proposal has emerged in the senate that would impose a 70% tax on these bonuses. Thirty-Five percent would be paid by the company and thirty-five percent would be paid by the bonus recipients. The senate believes that this will pass legal muster and hope to put it into law as soon as possible.