AIG Bonus Tax Is Stalled, Likely to Die in Senate

With populist outrage cooling and the White House even cooler, the 90% AIG bonus tax that sailed through the House last week is stalled in the Senate, where it's likely to die, reports Bloomberg. Majority Leader Harry Reid said yesterday this week will be devoted to debating national service and the budget—with Congress taking spring break in just two weeks, that pushes the tax bill into late April.

GOP Senate Whip Jon Kyl warned that if Reid “wants this bill, he’s going to have significant opposition.” Technically, Obama is still said to be reviewing the law, but he spoke out Sunday against acting in “anger” and “targeting a handful of individuals.” Noting that a number of AIG bonuses have been returned, Senate Budget Committee Chairman Kent Conrad says, “Hopefully, this is a problem that can be resolved in a different way.”
(More AIG stories.)