Just in case the 90% tax rate on bonuses wasn’t enough to get the message across, Congress may go one step further. A law being pushed by Barney Frank would prevent any and all bonuses from being paid out by TARP firms.
Ok, so that just means higher base salary, right?
Well, the bill also intends to prevent any compensation agreements that are “unreasonable or excessive”, which suggests that high base pay would be banned if DC thinks it’s too much.
Rep. Frank made a call for a similar scheme last year.