Sen. Gregg (R-NH) is among a handful saying the 90% tax on TARP company bonuses are unconstitutional because it’s a bill of attainder, an “an
act of the legislature that singles out and punishes a group or individual without trial.”

From Jonanthan Turley, GWU law professor:
“It [the bill]
could well trigger years of litigation. Just because a
company or individual is unpopular does not mean the government can
retroactively impose punitive measures against them. … There’s a host
of difficult contractual and constitutional and statutory barriers that
would have to be overcome by Congress.”

From Douglas Holtz-Eakin, former CBO director:
“Congress originally banned these very bonuses, then stripped the ban out of the stimulus bill and is now threatening confiscatory taxes on the lawful recipients. The Treasury knew about the bonuses and vouched for their legality but now wants double the money back somehow.”

And, finally, from James Madison (Federalist 44):
“Bills of attainder, ex post facto laws, and laws impairing the obligations of contracts, are contrary to the first principles of the social compact, and to every principle of sound legislation. … The sober people of America are weary of the fluctuating policy which has directed the public councils.  They have seen with regret and indignation that sudden changes and legislative interferences, in cases affecting personal rights, become jobs in the hands of enterprising and influential speculators, and snares to the more-industrious and less-informed part of the community.”

Remember, of course, this bill was to patch up a clause inserted into the stimulus bill. The stimulus bill that was rammed through Congress with handwritten notes in the margins. The 1000+ page stimulus bill passed by both houses less than 24 hours after it was finalized in conference committee. The stimulus bill that had to be passed right away before…President Obama could take a long weekend and sign it four days later.

Maybe if someone had read the bill before voting, he/she would have noticed this curious clause? Call me crazy, but it just seems so logical.

Finally — as an interesting aside, the AIG bonuses amount to $165 million. The Democrat-passed (behemoth) omnibus spending bill had 8,500 pork projects worth approximately $7.7 billion. Both are bad, but I only saw the Hill up in arms over one of ’em.