Biden's Economic Advisor Warns on Bonus Tax

There is clearly a panic developing in the Obama Administration over the stampede created by the rush to demonize the AIG executives who received bonuses as part of their employment contract:

WASHINGTON – Vice President Joe Biden’s economic adviser warned Sunday that a congressional plan to tax American International Group Inc. executives’ bonuses may go too far in using the tax code as a tool for retribution.

President Barack Obama has not said whether he would veto some version of a House-backed plan to heavily tax the $165 million in bonuses. Biden economist Jared Bernstein said it’s important to look at what version of the proposal comes out of the Senate.

“I think the president would be concerned that this bill may have some problems in going too far — the House bill may go too far in terms of some — some legal issues, constitutional validity, using the tax code to surgically punish a small group,” Bernstein said in a television interview. “That may be a dangerous way to go.”

As mentioned in a previous post, the rush to punish with confiscatory taxes will quickly scare away other healthy businesses from participating in government programs for fear of finding themselves on the bad end of some congressman's ire. Or worse, having a bunch of unwashed ACORN idiots marching up and down in front of his house.