Sunday, March 22, 2009

AIG Bonuses, Congress, and Bill of Attainder

The bonuses being paid to the AIG employees is a bitter pill to swallow, basically because AIG received a huge influx of cash from the U.S. taxpayers via our "gang that can't shoot straight" Congress. However, as I understand it, these are binding contracts that were all negotiated long before the pending economic Apocalypse, which is mainly due to no oversight of the Government Sponsored Enterprises (G.S.E.s) like Fannie Mae and Freddie Mac. These two G.S.E.s Are the largest holders, and insurers of mortgages in the United States. They have control over $5.3 trillion in mortgage debt. What is now obvious to some casual observers is that Congress is busting their butts trying to find someone to blame (along with "W"), and that is where the controversy comes in. For those of you out there who remember the "Pogo", comic strip one of his favorite lines was "We have met the enemy and it us." Appropriate, and in consonance with this Congress I would say, even though they would not admit it.

There is this little clause in the United States Constitution, it can be found in Article I, Section 9, Clause 3. I states simply "No bill of attainder or ex post facto (after the deed) law shall be passed". Now, a "bill of attainder" is a law passed by the legislature to punish a person/or persons without having a regular trial in court. What this amounts to is a way in which an unjust government sometimes punishes persons who disagree with it.

Article I Section 9, clause 4 also plays into the game here. It states "No capitation or other direct tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken" For elucidation "Capitation Tax" means a direct tax which collects money from every person. This clause directs that any national capitation tax must be the same for persons in every state. This was modified by the XVI Amendment to the Constitution, (Adopted in 1913) which states "The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration." Basically this means that no matter the source of the income the government can tax it, however, a person or persons cannot be singled out and punished with higher tax rates (like the AIG folks, and a bill of attainder).

I didn't mean for this to drag out into a lesson on the Constitution. However, I believe it is relevant to what is going on with the Congress in their CYA mode of operation. The fact is, if they manage to place this 90% tax rate on these AIG folks that received these bonuses, it is both a violation of a Bill of Attainder clause, as well as being a Capitation Tax, both are direct violations of the U.S.Constitution, as well as a breach of their Oath Of Office to "support and defend the Constitution of the Unite States"............

Lets keep the pressure on Congress. Hang tough brother patriots, and may God Bless America!






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