I watched with frustration and anger –  as you did –  as AIG executives took over $150 million in undeserved bonuses.  Then I watched in shock and horror as congress went about levying a “special” tax on the bonuses to “Get the American people’s money back.”

My Anger and frustration grow out of the fact that this is wrong on several levels — not out of the money paid.

First, congress was in such a big hurry to pass the bailout in the first place (remember, the world was going to stop turning if it wasn’t done in a few short hours) that they didn’t take time to debate the bill.  Many congressmen never even read it before signing it.  In short, it should have been spelled out FROM THE BEGINNING that those who took government money would be subject to government scrutiny and intervention.  BUT IT WASN’T!

Congress now, in an attempt to deflect and misdirect attention, is suggesting (aggressively pointing fingers at) a host of scapegoats (read whipping boys) that should be promptly whipped for sins that are actually those of congress.

Second, although I disagree categorically with the giving of bonuses to those whose failures resulted in catastrophic results to our economy, I have to believe we honor contracts and the rule of law.  Congress could have done something about this in the beginning and didn’t.  Whose fault is that?  The recipients of the bonuses?  Congress should never have doled out that much money in such a willy-nilly fashion.  No wonder it’s all hosed.

Third, now congress (in an attempt to cover its blunder) wants to levy a tax against those who received the bonuses.  I can’t believe that, and I have to say I am absolutely opposed to such a tax.  Taxes have historically been general, meaning they apply to everyone.  These taxes, on the other hand, are pointed squarely at one very small (ridiculously, incredibly small) segment of the population with the intent to take away what they are legally entitled to.  If they can do that to them,  where will it stop?  Who will be the next targeted group?

While taking this money back might look good on the surface, the precedent is extremely disturbing.  I have been wondering what small groups I belong to that could potentially be a target of a “special” tax in the future.  Now that we have a precedent it will be easier for them to do it to me.  I am absolutely opposed to a tax targeted at such a small group for those reasons.

What’s painfully clear from all of this is that if you feed at the government trough, you’re going to answer to the American people — no, that’s wrong.  You’re going to answer to congress, who may or may not represent the will of the American people.  That “answering” will take the form of increased, uncomfortable, — in some cases untenable — regulations, rules, demands that will likely change the way you’ve done business your whole life.

The only way to avoid such problems is to avoid — at all costs — the urge to take “free” money from the government.  NOTHING IS FREE.  There is a price attached to everything.  The price attached to this “free” money makes loan sharks look like school children.  This is about control, and when you take the handout, you are ceding control to our friends in Washington.  You make the call.