Obama doing the right thing

President Barack Obama is getting off to a good start. According to Associated Press, Obama announced Wednesday that he’s imposing $500,000 caps on senior executive pay for the most distressed financial institutions receiving federal bailout money, saying Americans are upset with “executives being rewarded for failure.”

It’s certainly about time that someone spoke up for the taxpayers on this issue. After all, if you’re going to get some taxpayer money then there should be certain things you agree to live with.

According to AP, Obama announced the dramatic new government intervention into corporate America at the White House, with Treasury Secretary Timothy Geithner at his side. The president said the executive-pay limits are a first step, to be followed by the unveiling next week of a sweeping new framework for spending what remains of the $700 billion financial industry bailout that Congress created last year. The executive-pay move comes amid a national outcry over huge bonuses to executives heading companies seeking taxpayer dollars to remain afloat. The demand for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 even amid the economic downturn and the massive infusion of taxpayer dollars.

“This is America. We don’t disparage wealth. We don’t begrudge anybody for achieving success,” Obama said. “But what gets people upset _ and rightfully so _ are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers.” “It’s not a government takeover,” Obama stressed in an interview Tuesday with CNN. “Private enterprise will still be taking place. But people will be accountable and responsible.”

Even some Republicans, angered by company decisions to pay bonuses and buy airplanes while receiving government help, have few qualms about restrictions. “In ordinary situations where the taxpayers’ money is not involved, we shouldn’t set executive pay,” said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee. “But where you’ve got federal money involved, taxpayers’ money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal.”

Wow, there you have it! A Republican agreeing with Obama. Maybe there’s hope for this country after all.

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4 Responses to Obama doing the right thing

  1. While I believe less is more when it comes to government intervention, on this issue I wholeheartedly agree that income and perks should be limited for those who participate in the bailout until the money has been repaid. A good start but It’s time to do more. How about the stocks and other options that could easily add up to millions of dollars?

  2. CJ says:

    Tell us how Obama stood up for the tax payers when he nominated Treasury Secretary Timothy Geithner, who made an “honest” mistake and didn’t pay thousands in income taxes, then when his employer IMF gave him the money to pay the tax, low and behold, Honest Mr. Geithner kept that money, too.

    Then Daschle comes along and says he “forgot” to pay his taxes, too.

    Wow! All of these Democrats who whined about Bush cutting our taxes or for the so called rich really truly didn’t care if Bush cut their taxes or not, because it is apparent that rich democrats in Government don’t pay their taxes and don’t get penalized for it either.

    When we be seeing an editorial on how rich democrats skirt the federal income tax and get away with it?

  3. Tree Hugger says:

    It’s not only democrats….. some other famous republican tax evaders include VP Spiro Agnew, Congressman Randall “Duke” Cunningham, Sentor Ted Stevens, John McCain (property tax evasion) and Joe the Plumber ! If we don’t pay our taxes the IRS sends a bill and puts a lein on your property. What gives?

  4. John Levy says:

    CJ, don’t you get it? The Dems have been given carte blanche by the media. Imagine all the headlines, editorials and media-blogs if the Republicans did the same thing. Never happen! It’ll be even worse once the Fairness Doctrine is passed. And it will be; who will question it? Not our beloved media. Nope, they will put their full support behind it. So much for the watchdogs of government.

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