Conn. Lawmakers Want To Tax TARP Bonuses

 HARTFORD (AP) – Some Connecticut lawmakers are eyeing bonuses paid to employees of investment banks and insurers that received funds from the federal Troubled Asset Relief Program to raise cash to help small businesses.

Senate Democrats unveiled the proposal on Monday. The plan calls for a two-year, 2.47 percent surcharge on the entire amount of a bonus totaling $1 million or more.

The surcharge would be on top of the total personal income tax rate in Connecticut, for a total tax rate of 8.97 percent on these bonuses.