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We’re still sour on Wall Street bonuses

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More than 70 percent of Americans say big bonuses should be banned this year at Wall Street firms that took taxpayer bailouts, a Bloomberg National Poll shows.

Also, one in six favor slapping a 50 percent tax on bonuses exceeding $400,000. Just 7 percent of U.S. adults say bonuses are an appropriate incentive reflecting Wall Street’s return to financial health.

A large majority also want to tax Wall Street profits to reduce the federal budget deficit. A levy on financial services firms is the top choice among more than a dozen deficit-cutting options presented to respondents.

The Council of Institutional Investors last month said that, among the six largest U.S. banks, only New York-based Morgan Stanley and San Francisco- based Wells Fargo & Co. have changed compensation practices to institute bonuses based on long-term performance, Bloomberg reported.

The $700 billion Troubled Asset Relief Program, enacted in October 2008 to prevent a collapse of the U.S. financial system, provided money to shore up financial-services companies, including American International Group Inc. Some recipients, such as Goldman Sachs and Bank of America Corp., have since repaid the money.

The Bloomberg poll of 1,000 adults 18 and older reflects continuing public animosity toward the bailouts, which became a potent political issue that helped defeat dozens of lawmakers from both parties in congressional elections this year.