Solution to AIG bonuses: a 90% tax on people who receive them

The House of Reps has a solution to those crazy AIG bonuses: a new tax that will claw back 90 percent of the income of anyone paid more than $250,000 by any firm that got more than $5 billion in bailout money.

The House measure would apply a 90% tax on bonuses given to employees who earn more than $250,000 at any firm that received more than $5 billion in bailout money.

A Senate proposal would would impose a 35% excise tax on companies paying bonuses and a 35% tax on employees receiving them. It would apply to all companies that received federal bailout funds.

Sen. Harry Reid, D-Nev., the Senate Majority Leader, said he doesn't think it will be much of a problem to resolve the differences between the House and Senate. They are hoping to move on the Senate bill next week.

U.S. House OKs bill for new tax on AIG bonuses