A proposal by Connecticut lawmakers to tax bonuses of $1 million or more received by executives at companies that took federal bailout money is constitutional, Connecticut Attorney General Richard Blumenthal said Tuesday.
In a legal opinion, Blumenthal's office found the proposal to tax some executive bonuses at companies that received funds under the Troubled Asset Relief Program is not an unconstitutional exercise of the state's taxing authority and would likely withstand a court challenge. "The legislative purpose of the proposed tax is to raise revenues that will assist small businesses and promote job growth in these difficult economic times — a legitimate and reasonable state objective," Blumenthal said.
