Guess who will end up paying? I guess it would be to personal to put the tax on our income directly!
I still think we should "Abolish the privately owned Fed and bring Honest Money Back"!
Obama to raise $90B with bank fee
By Silla Brush - 01/14/10 06:01 AM ET
President Barack Obama intends to raise $90 billion over the next decade through a special fee on the largest financial firms.
The administration is proposing the fee on the largest firms, not all of which received direct emergency money, to make up the losses on the government’s bailout efforts during the financial crisis.
“The fee that is put forward here is in many ways a minimum of what is owed back for the significant costs that are borne by the taxpayers,” a senior administration official told reporters on Wednesday night. The administration is calling the new policy a "financial crisis responsibility fee."
The fee would apply to roughly 50 financial firms each with at least $50 billion in assets, the official said. Of those, 35 would be U.S. firms, 15 would be subsidiaries of foreign-owned firms, and 27 would be U.S. banks, the official said.
The 10 largest firms would likely account for 60 percent of the total fee revenue over the decade, the official said. The fee could also be continued if there was still a shortfall after a decade.
The administration projects that the government’s $700 billion bailout program will have an overall cost to taxpayers of $117 billion, a much lower sum than previously thought.
But the official said that was still a conservative estimate and that the $90 billion in fee revenue over the decade would cover ultimate shortfall.
The fee of 15 basis points, or 0.15 percent, would fall on a firm's assets not including its core capital, the official said. Deposits insured by the Federal Deposit Insurance Corporation (FDIC) would not be assessed.
The administration will propose the fee in the budget due out in February and Congress will need to approve it. House Financial Services Committee Chairman Rep. Barney Frank (D-Mass.) said on Wednesday he intends to hold hearings on executive compensation and a fee on assets.
The financial industry will lobby heavily on the fee and some Republicans have already announced their opposition.
“This is the latest proposal in the Obama administration’s failed attempt to borrow, spend and tax their way into economic prosperity,” Rep. Jeb Hensarling (R-Texas) said earlier on Wednesday. “To think that banks will loan more money if you tax them is beyond economic ignorance.”
The nation’s largest firms have received trillions of dollars in government support through the $700 billion bailout program, guarantees on other assets and other measures from federal regulators and Congress.
While hundreds of banks continue to receive aid under the Troubled Asset Relief Program (TARP), as the $700 billion bailout is known formally, many of the largest and most prominent banks have repaid the aid. They are now preparing to pay out billions of dollars in bonuses.
Meanwhile, the broader economy remains bleak with long-term unemployment at record levels and the nation’s unemployment rate at 10 percent.
“It is in many ways offensive for those at our major financial institutions to suggest that they can today afford excessive and often outlandish bonuses for their top execs and not make whole the taxpayers for public policies that they have benefited from in extraordinary measure,” the senior administration official said.
The fee would not apply to auto companies, although General Motors and Chrysler received tens of billions of dollars under the TARP program. Small and community banks would fall below the $50 billion threshold and would not face the fee.
American International Group (AIG), the insurer crippled under the weight of derivatives transactions that went sour, would face the fee, the senior administration official said, as would other large insurers. Broker dealers would also face the fee.
Fannie Mae and Freddie Mac, the two housing giants that are in government receivership, would not be subject to the fee.
“In the current structure, in the current situation with Fannie and Freddie, I do not think it would make sense for a taxpayer’s perspective to put this fee on now,” the official said.
The contents of this site are © 2010 Capitol Hill Publishing Corp., a subsisiary of News Communications, Inc.
What a joke. These fees always find their way back to the public. The general public pays it all.BY Baloney Guy on 01/14/2010 at 06:51
Another cost to borrowers. How is taxing the banks going to make the financial situation better? And why should banks that repaid their TARP loans - some that were forced by their regulator to take the loans - have to pay Barry another fee?BY grabski on 01/14/2010 at 07:13
I say charge them * Transaction Fees APRs * Late Payment Fees * Overlimit Fees * Balance Transfer Fees * Foreign Transaction FeesThese banks have been sticking it to the "general public" anyway.BY JN7854 on 01/14/2010 at 07:25
This plan sounds like something Hugo Chavez would institute. The fees will come right out of the shareholder's pockets and that includes anyone who owns common stock mutual funds. The government already receives approximately 35% of the earnings via corporate income tax, how is that spent?BY Frank Minter on 01/14/2010 at 07:53
Oh yes, more of the same! Does Obama and the DEM's think putting more taxes and fees on business is going to create more jobs? Really ?? .. and do people really think this money will go to paying down the Deficit?? ..Tax and Spend is alive and well and bank customers in this case will pay for it! I can smell the PORK simmering as we speak !!!BY Pork Patrol on 01/14/2010 at 08:12
what is this- the biggest losers/takers of recovery money don't have to participate- Fannie and Freddie or GMAC; banks who are more than capable of handling the fee 50 billion don't have to participate in the shakedown even if they haven't paid their TARP money back? This is the fastest way to see banks continue to shift to more fee based activities for income and drive down assets- let cash (deposits) walk ( no higher FDIC insurance costs that have been levied) and let loans run off the books which carry the attendant risk of chargeoff; loan officers, tellers credit staff, collateral clerks are far more expensive than a few deal makers and they don't have a fifteen basis point fee or extra health care costs attached. Dopes!BY granite stater on 01/14/2010 at 08:16
Team Obama is trying to 'pivot' the peoples anger at the WH and Congress inton anger at the banks againevery time the WH is in trouble they turn to class warfarewe know it is the WH allowing housing to collapse, and spending us into oblivion, we will not be deterred and we will not be refocusing our anger on the bankswe know who is to blame and we will have our voices heard at the ballot boxBY jedimom on 01/14/2010 at 08:40
I always knew that democrats were ignorant, but Obama and his merry band of thieves is stepping it up a notch or two.BY JIM on 01/14/2010 at 08:52
Obama is taxing firms that repaid TARP or never took TARP in the first place. He has exempted GM, Chrysler, Fannie Freddie and they are the companies that are responsible for the TARP deficit. He gave Fannie Freddie blank checks. Obama is a communist. He picks winners losers and the winners are his friends. The losers are the rank file American taxpayer.BY Lola on 01/14/2010 at 08:58
Very good. This puts the GOP in a box: Are you for paying back the tax payers and making them whole concerning TARP or are you for Wall Street Bankers?A good example the new AIG will be forced to pay these fees, otherwise that money would never ever come back to federal government So yeah, Are you for AIG(yes I know, it's not a bank, but will be one of the fee payers)paying back the federal government for its bailout or not?BY John on 01/14/2010 at 09:02