The bill to levy a 90 per cent tax on bonuses at bailed out firms was overwhelmingly approved by Congress today. The measure, drafted hastily yesterday, got little public discussion and few people have actually seen the text of the bill.
The Senate is considering another sort of bill to tax bonuses at bailed out firms. Before the bill becomes law, it will have to be negotiated with the Senate so that the two bills are identical. It would then have to be signed into law by Barack Obama, who would be unlikely to veto it. Nonetheless, many people suspect that the final version of the bill will have a much lower tax rate and could even be rejected by Congress once the furor over the AIG bonuses has passed.