The US House of Representatives has approved a 90% tax on bonuses for executives at banks and financial services companies that got federal bailout funds.
The legislation now goes to the Senate.
The development has been welcomed by President Barack Obama.
In a statement, Mr Obama said he looked forward to receiving a final product that would serve as a strong signal to senior management that such compensation will not be tolerated.
Meanwhile, Mr Obama became the first sitting US head of state to appear on a late-night TV chat show.
The president appeared on The Tonight Show with Jay Leno to promote his economic reforms.
Mr Obama said he was ‘stunned’ by the bonuses paid to AIG executives.
He called for a return to ‘an attitude where people know enough is enough' and compared his first 59 days in office to being on American Idol.
'I do think in Washington it's a little bit like American Idol, except everybody is Simon Cowell,' the President said.
