January 21, 2010
Contact: Aaron Hunter 202-225-2040
Congresswoman Susan Davis Moves to Shift Wall Street Bonuses to Small Businesses
Bill would impose 50 percent tax on bonuses
Washington – Congresswoman Susan Davis (D-San Diego) became a cosponsor of legislation (H.R. 4426) to impose a 50 percent tax on bonuses over $50,000 at institutions that received TARP money. All of the revenue raised from the tax would be used to fund a temporary direct lending program through the Small Business Administration.
“A constant theme I hear from people is that we bailed out Wall Street, but what about the small businesses that have been struggling in this weak economy?” said Davis. “Small businesses can be a strong component of our nation’s economic engine and generator of jobs. They are in need of assistance and Congress should act fast to provide that assistance.”
According to a report released by the Treasury Department, the largest of the TARP recipients have cut small business loans by an additional $1 billion. At the same time, Wall Street is awarding $64 billion in bonuses this year.