Paulsen offers plan to recoup AIG bonuses

WASHINGTON, D.C. — In his first high-profile move since taking office, freshman Erik Paulsen, R-Minn., took center stage in the Capitol today with a plan to recoup bonuses paid to AIG executives.

Paulsen and other Republican Congressional newbies introduced a bill that would require the U.S. Treasury to recoup recent bonuses paid to AIG executives. This differs from a plan that was put forward by Senate Democrats, including Sen. Amy Klobuchar, D-Minn., which would impose a steep tax on the insurance group if it doesn’t renegotiate the terms of its bonuses.

“AIG executives receiving millions in bonuses while taxpayers continue to bail them out is outrageous,” Paulsen said in a statement.

Paulsen argued that his plan, which would require the Treasury to collect the bonuses within two weeks, is better than the tax plan because “moving forward we need to have a process in place.”

“These bonuses shouldn’t have been paid in the first place,” said Paulsen. “This is [fixing] today what should never have been done.”

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