Read the Bills Act Coalition

Thursday, January 14, 2010

Increased Taxes on Banks is bad Idea

Doesn't the President realize that taxing banks will only increase the rates and fees that the American consumer pays to the bank as that cost is past along to bank customer. This is not really a tax on banks but yet another tax increase on the American citizen. Having a President that understood how business works w...ould be nice..businesses don't pay taxes the customer of that business does since the tax is past down in the cost of the product. This is yet another proposal that will hamper the economic recovery, consumer confidence and customer spending....

From the AP:

Mindful of soaring deficits and an anti-Wall Street mood, President Barack Obama wants a new 10-year tax on the country's largest banks to cover a projected $117 billion shortfall in the government's financial crisis bailout fund....The president planned to propose Thursday a levy of 15 basis points, or 0.15 percent, on the liabilities of large financial institutions to make sure every dollar spent from the $700 billion Troubled Asset Relief Program to rescue Wall Street firms, auto companies and mortgage holders is either repaid or paid for. Congress would have to approve the tax....A senior administration official said the tax, which officials are calling a "financial crisis responsibility fee," would apply only to financial companies with assets of more than $50 billion. Those firms - estimated to amount to about 50 institutions - would have to pay the fee even though many did not accept any taxpayer assistance and most others already paid back their government infusions
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Read Here: http://apnews.myway.com/article/20100114/D9D7FIMG0.html

1 comment:

modularman2 said...

Instead reduce the tax deductibility of debt service interest from 100% to 80 or 90%. Take the tax revenues gained and exchange this for a cut in corporate taxes and taxes on capital gains. We are killing ourselves on an over reliance on debt for economic growth. Our system has collapsed from “debt abuse”. We need more organic growth like we had more commonly 100 years ago. This wouldn’t cost the government anything too. Credit might be the “mother’s mike” of capitalism but too much can destroy our system and threaten the worlds stability. Let business keep more of their earnings and self finance some of their growth then having businesses constantly go to banks for money they would have otherwise had but got taxed away. We would have better balance sheets and a more stable economy. If people like this idea then tell your congressman, because the Banking Lobby will fight this idea big time. The banking lobbies are infested in both parties and have ruled our government for 100 years. Banks are important but they are still middlemen that drain strength from productive corporations.