TANNER WORKS TO RECOUP 'OUTRAGEOUS' TAXPAYER BONUSES FOR AIG, CALLS FOR CLOSER SCRUTINY

WASHINGTON – U.S. Rep. John Tanner helped introduce legislation to recover bonuses handed out by businesses such as AIG that received federal rescue money under the Troubled Assets Relief Program (TARP), first authorized last year. Tanner is also demanding that the Treasury Department step up its scrutiny of how taxpayer money is spent at federally rescued companies.

“We, like taxpayers in Tennessee and across the country, are outraged that taxpayer money was used to reward under-performing executives,” Congressman Tanner said. “We must work to recoup the $165 million in taxpayer money used for these bonuses.

“More than 70,000 workers in the 8^th Congressional district – almost 10% of the workforce – are out of work. Families in West and Middle Tennessee are struggling to find jobs and pay their bills. Our priority should be continuing to help these working families and not executives at AIG and other companies receiving taxpayer money.”

Tanner is an original co-sponsor of legislation (H.R. 1586, filed March 18) imposing a 90% tax on bonuses from companies receiving more than $5 billion in taxpayer TARP funds. Congressman Tanner serves on the House Ways and Means Committee, which has jurisdiction over all tax policy.

Demanding a Full Accounting

Congressman Tanner has also demanded in writing that the Administration increase its scrutiny of companies receiving federal recovery assistance.

“Public confidence in our economic system can only be restored with real transparency and accountability,” Tanner and 93 Democratic colleagues wrote in their March 17 letter to Treasury Secretary Tim Geithner. “We are pleased to hear that President Obama intends to block the AIG bonuses and hope he will use any vehicle necessary to protect the American taxpayers’ interest. Our constituents deserve nothing less.”

Tanner, a founding member of the fiscally conservative Blue Dog Democrats, represents Tennessee’s 8th Congressional district in West and Middle Tennessee. He serves on the House Ways and Means Committee, where he chairs the Subcommittee on Social Security. Tanner also serves on the House Foreign Affairs Committee and as President of the NATO Parliamentary Assembly.

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Contact: Randy Ford, 202.225.4714