The House passed a bill that would tax some of the Wall Street bonuses at 90%. That's a very high tax rate. It's almost as bad as the "There’s one for you, nineteen for me," in the Beatles' "Tax Man." Supposedly the Beatles actually faced a 95% tax rate.
I doubt the 90% tax rate is going to survive. Obama seems a little hesitant. It's definitely punitive, and I don't like legislation that comes out of anger. I think this will be seriously modified in the Senate.
What I am hoping will happen is that raising the top marginal tax rate will suddenly look a very moderate and modest move. You don't like 90% for your bonus? How about 39% on your total income? Much better, no?
And thus, hopefully, we will come a little closer to eliminating the deficit.