AIG Bonus Tax May Stall as Obama Hesitates, Republicans Balk

Senate Budget Committee Chairman Kent Conrad of North Dakota pointed to reports that some AIG employees are returning their bonuses. New York Attorney General Andrew Cuomo said half of the AIG bonuses may be retrieved, and nine of the top 10 recipients will give back their checks.

“Hopefully, this is a problem that can be resolved in a different way,” said Conrad, who said “we’ll see,” when asked whether the Senate might drop the AIG bonus bill.

Senate Majority Leader Harry Reid, a Nevada Democrat, said yesterday he will give Republicans more time to study a proposal to impose a 70 percent tax on bonuses. AIG, paid out $165 million in bonuses, received $182.5 billion in U.S. bailout funds, according to the Government Accountability Office.