Obama: Tax The Banks

Of course. That makes sense. Tax the banks. From AP News:

WASHINGTON (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.

Mr Obama, you are simply astounding in your ignorance and arrogance. After you threatened the banks if they didn't take your federal dollars, now you're going to tax American banks?

Mr Obama, are you aware that banks exist to make loans and hold assets? They don't make money over foreclosures. And whom do you think will pay these taxes? Surely not the banks; it will only be, once again, the American Taxpayer. You spout Populist Pap.

Demorat House Financial Services Committee Chairman Barney Frank takes the Audacity Cake for insanity when he said:

"Look, the financial institutions collectively, particularly the larger ones, caused problems by their errors - their errors of judgment, their irresponsibility, in some cases their skating around dishonesty. I think it is entirely reasonable to say that the industry that, A, caused these problems more than any other and, B, benefited from the activity, should be contributing."

However, Republican Rep. Jeb Hensarling of Texas nailed it: "To think that banks will loan more money if you tax them is beyond economic ignorance."

It doesn't take a rapier-like wit to figure this out.

BZ