Published Articles
Obama introduces big bank tax
President Obama will introduce a new tax that charges 50 of the biggest banks in America $90 billion over the next 10 years.
From the WSJ:
“If approved by Congress, the new tax—which the White House calls a “financial crisis responsibility fee”—would force about 50 banks, insurance companies and large broker-dealers to collectively pay the federal government roughly $90 billion over 10 years. Of the 50, about 35 would be U.S. companies and 10 to 15 would be U.S. subsidiaries of foreign financial firms.
A senior administration official said the largest 10 institutions would pay about 60% of the tax’s total cost.”
What struck me as a bit out of the ordinary, was that the taxed firms are being expected repay the bailout money that the car companies took. Chrysler and General Motors are exempt from the tax because it has been the administrations contention that the financial crisis, made by the banks, assisted their collapse.
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First, Americans are being hit with healthcare reform legislation that no one knows what is in it except for fines, penalities, fees, taxes, and regulation. It is alot of government and no healthcare. Now President Obama is proposing a fee – actually a tax – on banks to pay back TARP money that, for the most part, has been paid back to government with interest. What the US needs desparately to get back into is the international economic game. This requires well thoughtout and prudent strategic planning to compete and provide jobs here at home. This emotional populism to no where is running very thin with the American people. Apparently with the Obama Administration, when they discover a problem you create a new tax to solve it.
If GM and Chrysler are a big drain on the federal treasury the best thing would be: 1) let them go under and be relegated to history books, which is probably where they are heading since bankruptcy did not go far enough elimating “legacy” cost and other long-term responsiblities; or 2) they relocate outside the US were they have less taxes and regulation. You can’t run a corporation like a social service organization, which is the only real experience our current Social Worker-in-Chief has.
Danny L. McDaniel
Lfayette, Indiana