Rep. Peter Welch (D., Vt.) introduced legislation Tuesday to slap a 50% tax on bonuses in excess of $50,000 paid to employees of any bank that received bailout money. The proceeds would be lent to small businesses struggling to find loans from commercial banks.
I give this no chance of passing, if for no other reason than it's too late in the cycle. The bonuses are practically out the door. You don't want a situation where you have to clawback the money, or if it's the banks that would pay, they have a big unexpected bill suddenly due.
But, I'm still surprised to see it raised as a possibility.
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