U.S. Rep has bill to tax TARP bank bonuses

WASHINGTON, Jan 12 (Reuters) - A U.S. Congressman on Tuesday introduced legislation that would tax bonuses at financial institutions that received government bailout funds, amid a growing debate over Wall Street bonuses.

As U.S. banks prepare to report robust profits and pay packages in the quarter and with the Obama administration fretting that Wall Street is out of touch with Main Street, a flurry of proposals to curb bank profits and pay are being floated in Washington.

The legislation introduced by Vermont Representative Peter Welch, a Democrat, would tax bonuses at firms that got funds through the government's Troubled Asset Relief Program (TARP) at a rate of 50 percent for all compensation topping $50,000.

Funds raised would go toward lending to small business.

Taxes on perceived supersized bonuses have been imposed recently in Britain and France.

A Welch spokesman said he has no co-sponsors yet for the bill, but said "there's a lot of support for this measure."

President Barack Obama's lead spokesman, Robert Gibbs, on Monday said Obama is still angry at the prospect of billions in bonuses for executives at banks that got government aid.