Three of the four Democrats from Iowa who’re in congress are joining the chorus of outrage about bonuses being paid to executives at a company that received federal bailout bucks.
Congressman Bruce Braley of Waterloo suggests the bonuses being paid to AIG executives be taxed at 100 percent. That would effectively nullify the bonus and return the money to the U.S. Treasury.
Iowa Senator Tom Harkin says if AIG executives don’t forego those bonuses, congress will "recoup them through the tax code" — in just the way Braley describes. Harkin and 11 other Democrats in the U.S. Senate have written a letter to the chief executive officer at AIG, saying "in America, we believe in rewarding success" while AIG seems to be rewarding "the most extreme failure."
On the House side, Braley was a lead author of a letter which urges the U.S. treasury secretary to do what he can to stop payment of the "lavish" bonuses. Ninety members of congress co-signed that letter, including Congressman Leonard Boswell of Des Moines.
Republican Senator Charles Grassley is geting lots of national attention for his comments about the bonuses. Grassley says the executives of companies getting federal bailout money need to publicly apologize for their mismanagement. Grassley says his comment that those executives should resign or commit suicide should be recognized for what it was — political rhetoric.