Tax on Executive Bonuses Under Consideration for Senate Extenders Bill

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The Senate will consider the addition of a new 50 percent tax on executive bonuses in excess of $400,000 as part of the tax extenders legislation (H.R. 4213) set for a final vote today. Finance Chairman Baucus says the provision is one of nine pending amendments on the American Workers, State, and Business Relief Act of 2010, which includes $31 billion in extensions of tax cuts that expired at the end of 2009. Sens. Webb and Boxer favor attaching their amendment to the bill in an attempt to claw back some of the money that Congress approved to bail out financial institutions in the fall of 2008.