March 23, 2009 Sidebar: Is the AIG bonus tax constitutional? Play video

(NECN: Boston, Mass.) - The millions in bonuses paid out to executives at insurance giant AIG have been the buzz of Capitol Hill - but will the bills being considered in Congress to tax them at 90% or more pass Constitutional muster? Suffolk University Law Prof. Carter Bishop isn't sure.

"It is possible, but marginal whether those are constitutional," Prof. Bishop told Chet Curtis on NECN in the new "Sidebar" segment, saying it could be considered an unfair trial on past conduct.

Whether either the Senate or House bills for a "bonus tax" get through Congress is still unknown - whether President Barack Obama will sign it is another question. But Professor Bishop says AIG didn't have the option of avoiding all this by not paying the bonuses.

"That (breach of contract) would have been unhealthy under Connecticut law," Bishop said, noting that AIG would likely have lost a suit if the company failed to pay the bonuses, which would have cost them the bonus money, damages and attorneys fees.

Tune in to NECN for 'Sidebar' every Monday at 4:15pm, during News Day Live.