Generally speaking, Sen. Mark Pryor says he’s no fan of major tax hikes. But the senator is willing to make an exception in the wake of the AIG bonus-at-taxpayers’-expense scandal.

Pryor co-sponsored legislation today he says is aimed at discouraging excessive bonuses by companies that have taken federal bailout funds. The bill imposes a 35 percent excise tax on both employers and employees,  as well as on retention bonuses and other bonuses. It also caps the amount of income employees of the firms are allowed to defer tax free.

Pryor says Congress and all Americans have every right to be outraged that executives who came looking for a handout after intensifying the nation’s financial crisis turned around and rewarded themselves with millions of dollars in bonuses.

Says Pryor: “I do believe this use of the tax code is completely justified and necessary to recoup taxpayer dollars. It’s a matter of fairness in the face of outright abuse.”

The Senate measure follows House action last week to approve a 90 percent income tax on bailout bonuses in an attempt to recover some of the money — $165 million paid out by AIG alone.

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