In a fit of economic idiocy driven by misdirected populist outrage, the House of Representatives passed H.R. 1586 on Thursday afternoon, subjecting to a 90% tax rate any bonus paid to a person who works at any institution which has received at least $5 billion in TARP money whose: (1) family income is over $250,000 (2) individual income is over $125,000 if he/she is married but files a separate
. tax return, or (3) bonus is larger than his adjusted gross income I have not yet heard anyone in the media mention either (2) or (3) above. But even beyond these details, the bill is more draconian than most people understand.
