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Obama: I Will Tax You to Punish Banks (John Stossel)
Fox Business ^ | January 14, 2010 | John Stossel

Posted on 01/14/2010 8:33:10 AM PST by Stoat

Obama: I Will Tax You to Punish Banks

Obama

 

Today President Obama will propose a new tax on the nation’s biggest banks, reports today's Washington Post. How will the tax work? 

Firms would pay a "Financial Crisis Responsibility Fee" at an annual rate of $1,500 for every $1 million borrowed to finance lending and other activities.

In other words, the Obama Administration is going to punish those greedy banks by making it more expensive for you to borrow money. This is wrong on so many levels, it's hard to know where to begin. Let's start with a point made by Jamie Dimon, CEO at JP Morgan Chase:

"Using tax policy to punish people is a bad idea...All businesses tend to pass their costs on to customers."

Exactly. But don't worry, the Administration thought of that. They have a plan:

But by imposing the tax on only the largest firms, government officials said, they hope to protect consumers. Firms that raised prices would give smaller rivals a competitive advantage, creating an incentive for companies instead to swallow the cost, potentially by reducing employee pay.

Oh, now I see. They will only punish customers of big banks. If I run a small bank, this will now give me an incentive to stay small.  I wonder how that will encourage lending.  

Beyond that nonsense is the idea that they're "constraining the industry's ability to take large risks and reap outsize rewards". The only reason that banks reaped "outsize rewards" for taking bad risks is because the government encouraged them to do that by guaranteeing mortgage loans. Risk taking got wild when government protected risk takers from feeling the consequences of a bad risk.  

Also absurd is the administration’s rationale for taxing banks to pay for losses in TARP.

The government expects its losses to result mostly from aid extended to AIG, General Motors and Chrysler, and the cost of mortgage modification efforts.

The administration decided to exclude the two automakers from the list of firms subject to the tax

The Atlantic's Megan McArdle has it right:

So we ought to tax bank profits because...GM is losing money just like everyone said it would ... I'm failing to see why the banks in particular--or rather the customers of the banks who will enjoy higher fees and lower interest rates--ought to bear the financial cost of the Administration's ill-advised bailout of the UAW.





TOPICS: Business/Economy; Crime/Corruption; Editorial; Front Page News; News/Current Events
KEYWORDS: bailout; bho44; bhoeconomy; bhofascism; bhotyranny; democrats; economy; johnstossel; nobama; obama; spreadthewealth; stealthewealth; stossel; tarp; taxcheatparty; taxes
This is wrong on so many levels, it's hard to know where to begin


A constantly recurring theme of Zero's "administration"
1 posted on 01/14/2010 8:33:12 AM PST by Stoat
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To: Stoat

he charges banks then they pass on those charges to us.

Now how about getting money from his unions or GM, etc.
why not those or is it because the unions get away with all of our money.


2 posted on 01/14/2010 8:36:14 AM PST by manc (WILL OBAMA EVER GO TO CHURCH ON A SUNDAY OR WILL HE LET THE MEDIA/THE LEFT BE FOOLED FOR EVER)
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To: Stoat

Obama The Brilliant...

Chavez had some ‘good’ ideas like this, too...


3 posted on 01/14/2010 8:42:30 AM PST by Former MSM Viewer
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To: Stoat

If you managed more than one person in your life, you had more management experience than this clown, pre-White House/.


4 posted on 01/14/2010 8:44:21 AM PST by nhwingut (Palin/Bachmann '12)
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To: Former MSM Viewer

“....Obama The Brilliant.....”

Let me re-direct my ‘brilliant’ comment towards the Obama supporters who empowered him by their votes.

There is the real problem.


5 posted on 01/14/2010 8:44:36 AM PST by Former MSM Viewer
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To: Stoat

Two bit Indonesian tin pot dictator wanna bee.


6 posted on 01/14/2010 8:47:07 AM PST by Tarpon ( ...)
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To: Stoat

Two bit Indonesian tin pot dictator wanna bee.


7 posted on 01/14/2010 8:47:19 AM PST by Tarpon ( ...)
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To: Former MSM Viewer

They are learning a real lesson in Obamanomics. Trickle up poverty 101.


8 posted on 01/14/2010 8:47:41 AM PST by screaminsunshine (!!three if by government)
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To: Stoat
>>>>>... the Obama Administration is going to punish those greedy banks by making it more expensive for you to borrow money. This is wrong on so many levels, it's hard to know where to begin.
"Using tax policy to punish people is a bad idea...All businesses tend to pass their costs on to customers."

This is more of the same social engineering crap that the libDems love to shove down the throats of Americans. In reality, its more fiscal insanity.

9 posted on 01/14/2010 8:56:43 AM PST by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: Stoat
How far we have come in my lifetime. A number of years ago interest paid on all debts to include credit card debt was deductible. Now we are going to "tax" the debt itself?

Scotty, if your up there, please beam me up! NOW!!!!!

10 posted on 01/14/2010 8:57:07 AM PST by ImpBill ("America ... where are you now?" signed, a little "r" republican!)
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To: Stoat

I thought the big gripe is that banks weren’t lending?

This will discourage lending even more. They’ll just buy more government bonds. The debt cycle continues.


11 posted on 01/14/2010 8:57:22 AM PST by GeronL (http://libertyfic.proboards,com)
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To: screaminsunshine

The politicians and government people are in two camps:

“DUMB AS STUPID” and “DUMB AS A FOX”


12 posted on 01/14/2010 8:58:07 AM PST by LibFreeUSA
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To: LibFreeUSA

They think they are dumb as a Fox. However they really are stupid.


13 posted on 01/14/2010 9:00:11 AM PST by screaminsunshine (!!three if by government)
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To: screaminsunshine

So the people get to pay for the bail outs twice then?


14 posted on 01/14/2010 9:02:32 AM PST by ltc8k6
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To: Stoat

..... Nothing more than a cynical and ridiculous public relations ploy to make it appear that the administration is going to make the big bad bank “pay” for their financial transgressions.

If I understand this article correctly, this 0bama proposal really states that financial institutions borrowing money from the government will in future pay the staggering annual interest rate of fifteen one-hundredths of one percent for future government loans. I’m sure that Goldman Sachs is quaking in its boots.

Meanwhile, neither the 0bama administration nor the Democratic congress has taken any substantive action whatsoever to put our national financial infrastructure back into proper order. Not a single damned thing.


15 posted on 01/14/2010 9:06:58 AM PST by Senator John Blutarski (The progress of government: republic, democracy, technocracy, bureaucracy, plutocracy, kleptocracy,)
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To: manc
he charges banks then they pass on those charges to us.

He assumes that this will go unnoticed because of a generalized economic illiteracy and a widespread seething antipathy for any entity branded a 'big business' by himself and his leftist coterie, and sadly he is right in many cases. 

Now how about getting money from his unions or GM, etc.
why not those or is it because the unions get away with all of our money.

The union bosses faithfully serve to call up the Left's brownshirt footsoldiers as needed and so he will protect them at all costs, but thankfully more and more rank and file union members are rejecting the marching orders of the Union Gauleiters when it comes to voting and political support.

A great change is sweeping this land, and fewer and fewer people are mindlessly voting Democrat as the party continues to expose itself as merely a home for the failed ideas of bitter, closed-minded people.

16 posted on 01/14/2010 9:08:27 AM PST by Stoat (Sarah Palin 2012: A Strong America Through Unapologetic Conservatism)
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To: Stoat

How is any of this Constitutional? Why isn’t this being challenged in the courts?


17 posted on 01/14/2010 9:13:31 AM PST by reagan_fanatic (Bush at his worst was still better than Obama at his best.)
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To: reagan_fanatic
Bank executives should be made to wear armbands with an emblazoned Star of David     pink triangle capitalist pig emblem.

Bank windows should also be marked with capitalist pig graphic emblems.

18 posted on 01/14/2010 9:21:18 AM PST by mbarker12474 (If thine enemy offend thee, give his childe a drum.)
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To: reagan_fanatic
How is any of this Constitutional? Why isn’t this being challenged in the courts?

I find myself asking this question after hearing virtually any policy statement at all from this utterly corrupt and shameful 'administration'.

19 posted on 01/14/2010 9:22:55 AM PST by Stoat (Sarah Palin 2012: A Strong America Through Unapologetic Conservatism)
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To: reagan_fanatic

Because none of it is law yet.

The lawsuits are coming...

But if Zero manages to pack the court, things will get ugly fast, I think.


20 posted on 01/14/2010 9:24:34 AM PST by benewton (Life sucks, then you die)
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To: Stoat

“I tax, therefore I am.”

21 posted on 01/14/2010 9:29:29 AM PST by Diogenesis ("Those who go below the surface do so at their peril" - Oscar Wilde)
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To: manc
he charges banks then they pass on those charges to us.

Wasn't there something passed by congress that gave banks and credit card companies a deadline of February for interest rate increases? Seems O is making this quite convenient for his bankers to send out some more letters announcing even higher rates. All the while making it appear he is sticking it to the fat cats when in essence he is sticking it to us... Again!

22 posted on 01/14/2010 10:06:48 AM PST by vlad335
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To: Stoat

Barry: “......you will not see your taxes increased a single dime......”


23 posted on 01/14/2010 10:13:10 AM PST by cranked
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To: vlad335

sadly there are enough stupid people not be bale to see what is really going on.

course the media are a disgrace who cover everything up from Coakley’s thug attacking a reporter to this closed door deals with unions and big companies to an elected sheriff who is protecting us gets looked at and charged but black racists holding sticks outside a voting station gets away it .

The frustration in this country right now is at all time high, even my mother in law up in MA who has always voted Dem is now voting republican for the first time and if she is then the Dems are really in trouble


24 posted on 01/14/2010 10:15:12 AM PST by manc (WILL OBAMA EVER GO TO CHURCH ON A SUNDAY OR WILL HE LET THE MEDIA/THE LEFT BE FOOLED FOR EVER)
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To: Stoat

“How is any of this Constitutional? Why isn’t this being challenged in the courts?”

Megan McArdle had another pithy comment: “But if we want to bail out GM, we should pony up out of the income tax, not cast about for the least popular group we can find. That’s no way to run a tax code, or an economy.”

This epitomizes Obama’s approach to everything. He wants a universal health plan that allegedly benefits everyone, but wants to exempt everyone except “the rich” from having to pay for it. He’s discovering he actually can’t achieve this objective, so he’s trying to hide the extent to which his plan actually will raise taxes or costs on those who aren’t “rich.” But the general principle is the same: he’s promising $1 trillion in goodies to the masses and claiming it will get bankrolled by a small minority who can afford it.

With the banks, he makes it look as if the “fat cats” are paying, when in fact it’s the little guy getting screwed. Either he himself is appallingly ignorant of Econ 101 [a hypothesis not yet disproved IMHO] or he knowingly and cynically is counting on voter ignorance/apathy to get away with populist policies that make great sound bites but cannot withhold critical scrutiny in terms of how they play out in the real world. This is not leadership: it is demagoguery.


25 posted on 01/14/2010 10:23:46 AM PST by DrC
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To: Stoat

The perfect storm for Obama to divert from his failed Presidency. Play the Class Warfare ploy. It usually works in many blue states for the Dems. Kill the banks. Kill oil comopanies. Kill big business. Forget small businesses if they are Republican. Tax you , tax me. Tax and spend till all who are the people with no understanding of capitalism are bribed for a lifetime to vote for socialist pacifists.


26 posted on 01/14/2010 10:36:59 AM PST by phillyfanatic
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To: Stoat

we got our selves a third world tin horn dictator!


27 posted on 01/14/2010 11:38:01 AM PST by Ancient Drive (DRINK COFFEE! - Do Stupid Things Faster with More Energy!)
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To: GeronL; Stoat
I thought the big gripe is that banks weren’t lending?
This will discourage lending even more...
The debt cycle continues.

That's so true...Just watched Stossel's Program
(10:00pm F)_(7:00pm SA)_(11:00pm SU)

Crony Capitali$m
(Rewarding your Friend$ /
Covering your @$$ /
Destroying your Competition )


28 posted on 01/14/2010 6:13:47 PM PST by skinkinthegrass (Zer0 to the voter: "Here's DeathCARE ® Plan"...now....just die. :^)
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