Sunday, May 02, 2010

CT Senate Votes To Impose Extra Tax On TARP Bonuses For Investment Bank Employees

Huffington Post:


HARTFORD, Conn. — A bill that would impose an extra tax on bonuses paid to Connecticut employees of investment banks and insurers that received federal bailout aid during the economic crisis has passed the state Senate.

The proposal was approved on a 21-14 vote on Friday and now moves to the House of Representatives. Even if it passes the House, Gov. M. Jodi Rell is expected to veto the bill.

The legislation calls for a two-year, 2.47 percent surcharge on any bonus totaling $1 million or more, for a total tax liability of 8.97 percent. Lawmakers want to use the money to exempt about 46,000 small businesses from the annual $250 business entity tax.

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