It looks like there is increased momentum in the Senate for raising the tax rate on big bonuses for bailed out firms

Senators Barbara Boxer and Jim Webb proposed a 50 percent tax on 2009 bonuses above $400,000 at any firm that has received more than $5 billion in government assistance.

The senators said they had not yet gathered broad support for the proposal, and neither sits on the tax-writing Senate Finance Committee, which would likely have to take up the bill. A 35 percent tax on bonuses at bailed-out companies was proposed last year by the leaders of the Finance Committee, Democrat Max Baucus and Republican Charles Grassley, but it has not been acted on.

I call it a half step, because in order to fix this, it needs to apply to a lot more people than that, and to apply to all income.

The marginal tax rate for people earning more than about $5 million a year should be north of 75%.

I don’t care if it’s Lloyd Blankfein, A-Rod, or Lady Gaga, let’s raise their taxes.