WASHINGTON — The U.S. House approved a bill Thursday that would impose a new tax on the $165 million paid to bailed-out insurance giant AIG as Senate Republicans stepped up criticism of the Obama administration's handling of bonuses.Window dressing...to appear concerned. The fact remains that the Equal Protection Clause will shoot down this piece of unconstitutional garbage faster than a shotgun levied on a balsa wood glider.
The House measure would apply a 90% tax on bonuses given to employees who earn more than $250,000 at any firm that received more than $5 billion in bailout money.
The third test for Equal Protection is the only shot Congress has of keeping this bill intact...and its not a good one in my opinion.
Rational-basis test: the law is constitutional so long as it is "reasonably related" to a "legitimate" government interest.I'm curious how the Courts will accept the argument that the "legitimate" government interest is congressional incompetence and trying not to look bad. Or perhaps it could be considered quid pro quo (in Chris Dodd's case).
Still, how exactly does an ex post facto law supersede a legitimate contractual obligation reviewed and approved by the sitting committee member of congress and the Treasury Secretary's office? This is further complicated in that CEO Liddy was installed by the keepers who are now second-guessing his decision making.
Jackasses one and all...