US House Opens Debate On Bill To Tax Wall Street Co Bonuses

The U.S. House of Representatives began debate Thursday on a bill that would tax at 90% bonuses at Wall Street firms that received federal bailout funds.

The House is expected to pass the bill later in the afternoon. The Senate won't take up its own legislation on tax bonuses until next week, according to Senate Finance Committee Chairman Max Baucus, D-Mont.

"We're not trying to punish anybody," said House Ways and Means Committee Chairman Charles Rangel, D-N.Y. "Rewards are subjective, but you don't do it with taxpayers' money."

The House bill would affect bonuses paid by firms that received more than $5 billion from the Troubled Asset Relief Program, plus Fannie Mae (FNM) and Freddie Mac (FRE). The House bill is being considered under special rules meant to expedite legislation, which require a two-thirds vote of members present.

It comes as lawmakers continue to press insurance giant AIG (AIG) for the names of employees that were paid $165 million in bonuses last week.

-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones