Among the hullabaloo surrounding the AIG retention bonus scandal, one thing is certain: speaking before Connecticut lawmakers Thursday, AIGFP exec Stephen Blake did not bend to public opinion. Blake defended the insurance company’s $165 million in retention bonuses which have drawn the scorn of taxpayers following the government’s $182.5 billion bailout of AIG. “The program did what it was supposed to do, and that was to retain employees,” he said. While defending the bonuses, though, he affirmed that no rewards went to individuals who made credit default swaps, which are largely responsible for AIG’s failure. (Associated Press)In an effort to bring U.S. tax evaders back into the system, the IRS announced Thursday that it will ease its restrictions on Americans who hid large sums of money in offshore accounts. Under old rules, the IRS required tax evaders to pay half of the annual balance of their accounts, but new rules will only require payments on five to twenty percent of the annual balance. The IRS also said that it generally will not prosecute tax evaders who come forward voluntarily. The new tax plan was developed in response to the investigation into UBS, a Swiss Bank accused of helping American taxpayers dodge U.S. taxes, but will apply to clients of all international banks. (New York Times)
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