The GOP is taking the golden opportunity to bash the Dems for screwing up when throwing the Porkulus together with regards to AIG bonuses. Approved language in the bill that would have prevented the mess, was stripped out of the bill in closed-door meetings. This is why Chris Dodd is spinning like a carnival ride right now, pointing fingers at Obama, Pelosi as well as himself. Upside: this royal screwup has handed Republicans a glorious chance to pound the whole stimulus frenzy and insanity.

The AIG bonuses are a white-hot potato and the fact that there was no time to read spending bills before a vote, ensures there will be more of these “Oops” moments. Pelosi and the Dems are NOW poised to pass a “spank AIG” bill, HR 1586 “Controlling Corporate Bonuses.” It’s aimed at approximately 12 firms who received TARP money. It is clearly unconstitutional..as it taxes the bonuses at 90%. This is called a bill of attainder, and it is prohibited by the Constitution. If Congress is going to ignore contract law, and not pursue constitutional remedies to the problems the Dems have created, no contracts are safe.

Many banks entered the federal bailout program because of intense pressure from Washington and many only after being assured that confiscatory taxation and other ex post facto penalties would be off the table. How badly any of them will be hurt depends on the fine print in the legislation now at issue. Certainly it would be useful if those details got a complete airing BEFORE Congress acts this time.

Dems say they are responding to bad behavior, not tearing up the constitution. Like hell they aren’t. They’re saying the patch-up bill they want to pass today is just the beginning. Although this CYA is aimed at TARP recipients, ALL Corporate salaries that are “unfair” are in the crossfire.

Barney Frank said:

Congress will consider legislation to extend some of the curbs on executive pay that now apply only to those banks receiving federal assistance. “There’s deeply rooted anger on the part of the average American,” the Massachusetts Democrat said at a Washington news conference today.

He said the compensation restrictions would apply to all financial institutions and might be extended to include all U.S. companies.

The Dems want to regulate entire corporate compensation packages. “Salaries, Commissions, Bonuses, even ‘Employee of the Week’ prizes all have to be regulated.” Representative Brad Sherman, (D-CA) actually said this 3 minutes ago on the floor of the House. They’re ALL scrambling to cover their collective asses, and in doing so, are pushing us even more quickly into a fascist society.

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