Two Democratic senators on Thursday said they would seek to tax bonuses granted by firms that got funds from the Treasury Department's Troubled Asset Relief Program.
Sens. Barbara Boxer of California and Jim Webb of Virginia introduced a bill that would levy a 50% tax on bonuses above $400,000 but only for firms that got $5 billion or more in Tarp funding. The senators estimated that the bill — which applies only to 2009 bonuses — would affect 13 firms and generate roughly $10 billion.
The two stipulated that their proposal comes in addition to a proposal offered by President Obama to impose a fee on financial companies with assets of more than $50 billion, not in lieu of it.