Democrats are seeking to introduce a 50 percent bonus tax on banks that received funds under the Troubled Asset Relief Program (TARP), Financial Times reports. Jim Webb, the Senator from Virginia and Barbara Boxer from California, have proposed an amendment to an employment bill that will levy the one-time tax on bonuses above $400,000.
The bill will be applicable to companies that received over $5 billion under TARP. The government has failed to support any such tax on bonuses and has instead levied a $90 billion fee on banks themselves and clamped down on pay-outs. The U.S. Chamber of Commerce has opposed the move saying the tax will hinder efforts to resolve the financial crisis and hamper job creation.
