Do you really believe that the AIG execs are saying "OK - my bad" and giving back their bonus billions? RIGHT!

I cannot be the only one thinking this ....am I?

BUMP please!!!

Of course they have no conscience.

Its all staged to distract you. But you see the lies, so move on, lesson mastered. ;)

I think the execs are people just like everyone else and the bonus was written in their contract when they took the job. I think the only reason they're giving back the bonuses is to make their life easier and free of death threats. How about Congress give a little back.

There is now way that I would surrender any money to a failed organization.

You Won the Lottery!

But New York is Broke....

Would you like to give it back, or should we
bring out the pitch forks?

Here's a brain-buster my tax attorney father and I discussed this morning. AIG banker gets bonus, immediately this is taxable income to him no matter what. AIG banker gives bonus back to AIG. This triggers a gift tax, as the bonus is certainly over the $13,000 annual gift exclusion for gift-tax purposes. Because the government now owns 80+% of AIG, the employee has made a gift to the shareholders of AIG, which is mostly the government. There is no exemption for gift tax when making a gift of a future interest. Because the corporation of AIG stands in between the employee and the government, the gift is considered a gift of a future interest, thereby instantly triggering gift tax. Gift tax can be as high as 55%, and the amounts of these bonuses would place many of them in this rate category.

Bottom line: the AIG employee, trying to either do the moral thing, or out of fear, has now been subject to income tax at the highest rates, PLUS gift tax at the highest rates. THIS is the kind of unforeseen shit that happens when the government gets involved in legislating contracts.