Obama Unveils Proposal on Bank Taxes - WSJ.com
Let's be very clear about the numbers here.WASHINGTON--President Barack Obama, declaring "we want our money back and we're going to get it," said Thursday banks have a responsibility to make taxpayers whole for the financial-sector bailout and should pay a proposed tax by rolling back big bonuses.
"Instead of sending a phalanx of lobbyists to fight this proposal or employing an army of lawyers and accountants to help evade the fee, I suggest you might want to consider simply meeting your responsibilities," Mr. Obama said in remarks at the White House.
The president, who said his resolve in recouping taxpayer funds has been stiffened by reports of "obscene bonuses," formally unveiled his plan for a new tax on large financial firms. The tax, which the White House calls a "Financial Crisis Responsibility Fee," is expected to raise $117 billion over about 12 years, and $90 billion over the next 10 years. Around 60% of the revenue will come from the 10 largest financial firms.
TARP is projected to cost the taxpayer just $42 billion. That $42 billion includes a $30b loss from the automakers, a $30b loss from AIG, and a $19b profit from the big banks.
So in order to recoup that $42b loss, the most fair way to do it is to impose a $120b tax on the only people who didn't actually cost the taxpayer money? ****ing bull****.
The financial industry dared to agree with the Republicans in opposing your proposed reform, so this is your way of getting back at them?"When we see reports of firms once again engaging in risky bets to reap quick rewards, when we see a return to compensation practices that seem not to reflect what the country's been through, all that looks like business as usual to me," Mr. Obama said. "The financial industry has even launched a massive lobbying campaign, locking arms with the opposition party to stand in the way of reforms to prevent another crisis. That, too, unfortunately is business as usual."
So it excludes the organizations that are responsible for more than half of the losses from TARP, while placing the entire responsibility on the organizations that earned the government a $19b profit.The White House plan, which excludes small banks and auto makers that accepted funds from the government's Troubled Asset Relief Program, reflects lingering public anger toward Wall Street and mounting unease over the billions in bonuses that financial firms are expected to dole out this year.
This is probably the worst example of naked populism we've seen from Obama. There is just no justification for this.