REP. CALVERT VOTES TO RECOUP 90% OF AIG BONUSES, DEMANDS ANSWERS ON HOW LANGUAGE WAS INSERTED

WASHINGTON, D.C. March 19, 2009 – Today Rep. Calvert voted for H.R. 1586 which imposes a 90% tax on bonuses received by AIG employees.  Rep. Calvert voted against the original $816 billion stimulus bill which included the bonus loophole inserted by Democrats without discussion.

“I find it the height of hypocrisy that Democrats are blustering over language that they inserted into the stimulus to provide for bonuses,” said Rep. Calvert.  “However, AIG should not be using taxpayer dollars to reward employees with one million dollar bonuses and that is why I voted for H.R. 1587.  In addition, the American people deserve answers not only from AIG, but from Speaker Pelosi and Senate Majority Leader Reid on how the language, which specifically allowed bonuses, was inserted into the stimulus bill.”

The following text was inserted in the stimulus bill during conference, where no Republicans were allowed attend:

The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary.

“While I voted to rescind the bonuses, the energy Democrats use for populist ‘outrage’ at AIG would perhaps be better used toward self-reflection,” said Rep. Calvert.  “It was at the Democrat’s insistence that lending standards be lowered which played a key role in the financial meltdown.  It was Democrat language inserted into the stimulus bill that protected AIG bonuses.  The only time Democrats seem capable of reflecting on past actions is when there is an opportunity to blame the Bush Administration.”

“The institutions that received bailout funds must be held accountable,” said Rep. Calvert “At the same time, they must be able to thrive and become profitable so that the American people can get a return on their investment and be paid back.”

###