Obama Must Veto The 90% Bonus Tax Rate

If the 90% retroactive tax rate on bonuses passes, Obama has to veto it. Otherwise he’s a hypocrite.

Remember, it was Obama’s White House and Treasury secretary that demanded that salary limitations would not be applied retroactively when the stimulus passed. Nothing has changed since then, except that the AIG story has stoked more populist outrage. But that doesn’t change the facts.

Either TARP-recipients can pay market rates or they can’t. If Obama signs the limitations, he’s just swaying the way the wind blows, which we don’t want in a President.

Our guess is that he’s hoping and praying it doesn’t pass, just like he’s hoping and praying the Employee Free Choice Act doesn’t pass, so that he doesn’t have to choose between a bad law or a veto pen, pissing off his base.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.