Connecticut Lawmakers Pass Temporary TARP Bonus Tax

May 4, 2010

Connecticut lawmakers have approved a bill imposing extra taxes on bonuses paid to state employees of investment banks and insurers that received federal bailout aid during the economic crisis.

The House of Representatives approved the bill 89-49 early Sunday, and the Senate had already approved it Friday.

But it’s doubtful it’ll become law. Republican Gov. M. Jodi Rell is expected to veto it, and bill did not pass the Senate with enough votes to override a veto.

It sets a two-year, 2.47 percent surcharge on any bonus totaling $500,000 or more.

Democrats say the tax liability would be lower than what’s imposed in neighboring New York, but Republicans say it sends the wrong message and could be ruled unconstitutional.

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