Mobs are out in force following Barney Franks call to name names at AIG. Death threats are being called in and the choice of death is by piano wire. Tony Soprano would be proud, but James Madison and other Founding Fathers would frown in disgust.

The only people breaking laws and thumbing their noses at the US Constitution are the liars in Congress.

“The House passed legislation Thursday that would significantly curb Wall Street bonuses this year, as lawmakers from both parties echoed popular outrage over big payouts to employees of American International Group Inc. after the ailing insurance giant took billions of dollars in taxpayer money,” The Wall Street Journal reports. “Significantly curb” is an understatement:

The House measure was approved on a 328-93 vote and would impose a 90% surtax on bonuses granted to employees who earn more than $250,000 at companies that have received at least $5 billion from the government’s financial rescue program. The bonus tax, if approved by the Senate and signed into law, would be retroactive to Dec. 31, 2008.

However, the numbers lie! The text of the bill makes clear that the 90% tax on bonuses would be in lieu of the ordinary income tax and alternative minimum tax, although those levies would still apply to all other income.

Many AIG employees would end up being taxed on their bonuses at an aggregate rate exceeding 100%. Here is how taxes work:

• Bonuses are also subject to the Medicare FICA tax of 1.45% (not counting the employer’s portion), bringing the total federal tax to 91.45%.
• Employees are also liable for state and local income taxes, which would not be deductible from the bonus tax. For an employee living in New York City, the state and local rates are 6.85% and 3.648%, respectively. Add it all up and the tax liability comes to 101.948%.

You see, the brilliant Barney Frank and his Congressional ilk, including many Republicans who voted for the tax, don’t read what they vote for and are attempting to tax more than the legally earned income of private citizens.

When guns are outlawed, only outlaws will have guns. When freedom and liberty is outlawed we live in a tyranny.

Wake up America! Start paying very close attention. Indeed!