Why a tax on bonuses is stupid and dangerous

Ok, I admit it, last Wednesday I was glued to the television watching BBC's broadcast of American International Group CEO Edward Liddy's testimony before the US House Financial Services subcommittee about the $165 million in bonuses paid to executives of his bailed-out company. I held my breath, hoping that the BBC wouldn't cut away to news about Austrian murderer and rapist Josef Fritzl or a fire in central London. I wanted them to stick to the story that mattered to the world. I wanted to watch every twitch on Liddy's face, and I couldn't wait for what I knew would be and was a scrumptiously amusing cross-examination from Barney Frank, the ever colourful Massachusetts...