U.S. House OKs bill for new tax on AIG bonuses

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.

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 vote was 328-93.

"We want our money back and we want our money back now for the taxpayers," said House Speaker Nancy Pelosi, D-Calif.

In all, 243 Democrats and 85 Republicans voted "yes" on the bill. It was opposed by six Democrats and 87 Republicans.

The margin of victory came despite sharp Republican attacks calling the legislation a legally questionable ploy divert attention from Obama administration missteps.

Minority Leader John Boehner, R-Ohio, said the bill was "a political circus" diverting attention from why the administration hadn't done more to block the bonuses before they were paid.

A Senate proposal would would impose a 35% excise tax on companies paying bonuses and a 35% tax on employees receiving them. It would apply to all companies that received federal bailout funds.

Sen. Harry Reid, D-Nev., the Senate Majority Leader, said he doesn't think it will be much of a problem to resolve the differences between the House and Senate. They are hoping to move on the Senate bill next week.

"I would hope they would allow us to proceed on this," Reid said of Republicans. "They are stuck in reverse. They don't want us to do anything."

Earlier Thursday, the Obama administration and congressional Democrats were the target of Republican discontent.

Arizona Sen. John Kyl, the No. 2 Republican in the Senate, said Obama appeared "distracted," noting the president's scheduled appearance tonight on NBC's Tonight Show With Jay Leno.

"It does not appear that the administration has figured out… how to manage the taxpayer's money," Kyl added.

Sen. Lamar Alexander, R-Tenn., said the "AIG bonuses make the president subject to the charge that he's living above the store, but he's not minding" it.