Tuesday, March 31, 2009
AIG isn't only place where taxpayer-backed bonuses are paid: Congress dishes out big bonuses to its own staffs, and you're paying for it all
All those lawmakers trying to shame AIG's top officer last week on Capitol Hill for giving bonuses during tough times are doing the same damn thing, reports the Wall Street Journal in a well-researched piece.
And a spokesperson for House Speaker Nancy Pelosi offers the same excuse as AIG -- bonuses are used to retain important personnel who could be working elsewhere.
Sometimes, I feel this nation is unsalvageable. The hypocrisy that's ripping off taxpayers is too prevalent.
The WSJ reports in this excerpt:
WASHINGTON -- While Congress has been flaying companies for giving out bonuses while on the government dole, lawmakers have a longstanding tradition of rewarding their own employees with extra cash -- also courtesy of taxpayers.
Capitol Hill bonuses in 2008 were among the highest in years, according to LegiStorm, an organization that tracks payroll data. The average House aide earned 17% more in the fourth quarter of the year, when the bonuses were paid, than in previous quarters, according to the data. That was the highest jump in the eight years LegiStorm has compiled payroll information.
Total end-of-year bonuses paid to congressional staffers are tiny compared with the $165 million recently showered on executives of American International Group Inc., which is being propped up by billions of dollars of U.S. government subsidies. But Capitol Hill bonuses provide a notable counterpoint to the populist rhetoric and sound bites emanating from Washington these past weeks.
Last year alone, more than 200 House lawmakers, both Republicans and Democrats, awarded bonuses totaling $9.1 million to more than 2,000 staff members, according to a Wall Street Journal analysis of office-disbursement forms. The money comes out of taxpayer-funded office budgets, and is surplus cash that would otherwise be forfeited if not spent.
Payments ranged from a few hundred dollars to $14,000. Lawmakers, at their own discretion, gave the money to chiefs of staff, assistants, computer technicians, and more than 100 aides who earned salaries of more than $100,000 a year.
This has gone on for many years. There is no prohibition against handing out excess cash. The lawmakers say it is a nice incentive to get staff to conserve budgets, and it rewards hard work and long hours.