US lawmaker eyes surtax on bailout firms' exec pay

WASHINGTON, March 17 Tue Mar 17, 2009 11:07am EDT

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WASHINGTON, March 17 (Reuters) - A member of the U.S. House of Representatives Financial Services Committee said on Tuesday that he wants to consider slapping a surtax on excessive pay to executives at bailed-out firms, such as American International Group Inc (AIG.N).

"I look forward to working with other colleagues on a tax law to impose a substantial surtax on excessive compensation paid to executives at bailed-out firms, especially AIG," said California Democratic Rep. Brad Sherman at a hearing.

An excessive pay surtax bill is being developed in the House, said a senior Democratic congressional aide.

President Barack Obama on Monday expressed "outrage" about $165 million of bonuses paid to employees of AIG, once the world's largest insurer, now getting a government bailout.

New York Attorney General Andrew Cuomo has said he will subpoena AIG for more information about the bonuses, including the names of the recipients. (Reporting by Kevin Drawbaugh)

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