The bank tax emerges

[SpartanDem]

The bank tax emerges
Jan 14, 2010 09:02 EST

Jackie Calmes has the broad outlines of the new bank tax, and I like the way it looks: essentially, it’s a 0.15% tax on bank liabilities excluding deposits (which already come with an FDIC fee attached). It would be paid by roughly 50 firms, including GE Capital, and would raise something on the order of $90 billion over 10 years. That’s an average of $180 million per firm per year, which seems eminently affordable to me.

US subsidiaries of foreign banks like HSBC and Deutsche Bank will be taxed; it’s unclear whether foreign subsidiaries of US banks will be as well. The aim of the tax is to ensure that the entire TARP fund gets repaid in full — not just the money lent to the banks directly, but also the money lent to the banks indirectly, through the AIG bailout. The tax is not, however, designed to repay the cost of rescuing Fannie and Freddie.

I like the way the tax is structured: it’s simple, and the liabilities-minus-deposits formula naturally puts more of the onus on investment banks than commercial banks. It also encourages banks to fund themselves with equity rather than debt.

Will the fee be passed on to bank customers? Well, it doesn’t apply to deposits, so retail banking customers shouldn’t be affected, but you never know. If they are, at the margin that might be no bad thing, if it encourages bank customers to move their money to small-enough-to-fail banks and credit unions.


http://blogs.reuters.com/felix-salmon/2010/01/14/the-bank-tax-emerges/

Doesn't sound like a empty gesture like some were suggesting to me.

[phleshdef]

1. "Well, it doesn’t apply to deposits, so retail banking customers shouldn’t be affected"

Looks like the "but it will be passed onto consumers" talking point is soon to go down in flames.

[rurallib]

3. Good.

[SpartanDem]

6. As this article and another one I read said if it does happen

it wouldn't necessarily be a bad thing, as this fee applies to only to the largest banks and people dislike changing banks if the cost is passed on it might encourage to leave them for smaller banks.

[HiFructosePronSyrup]

2. Obama could perform the Heimlich maneuver on a nursery full of choking babies.

The usual suspects would call it an empty gesture.

[grantcart]

4. and yet experts at DU were so sure that it did not exist

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x123448

[SpartanDem]

9. Of course those experts are nowhere to be found today

[rebel with a cause]

13. Followed your link....

Ignore list must be fed....

So many idiots/haters to sacrifice to the great ignore god...

the list is getting bigger, bigger all the time...

More to be had here?

:hi:

[Jeff In Milwaukee]

5. ....TOLD you he was a Socialist

:rofl:

[Clio the Leo]

7. "Almost no coverage of Obama's $90B bank tax proposal from liberal blogs."

Well aint that a biddy?

http://twitter.com/fivethirtyeight/status/7755685196


(However, Ezra is disputing this...)
http://twitter.com/ezraklein/status/7755718484

.... lol, but I doubt Ezra is who Nate Dog had in mind.

[Clio the Leo]

8. To which Nate replies....

"I mean the blogs that tend to be more skeptical/anti-Obama. IMO they have some tendency to ignore when O does something good."
http://twitter.com/fivethirtyeight/status/7755833233

(And I'm smiling with an evil grin at the knowledge that the Democratic polling-master mind is Nate Silver is, in fact a bona fide "Cheereleader")

[GOTV]

10. The question is, will president Lieberman sign it?

[slipslidingaway]

11. This provision was part of the TARP bill, to announce early that you ...

are for a tax just before huge bonuses are paid is convenient.

[inthebrain]

12. Goldman Sachs is paying out 20 billion in Bonuses THIS YEAR

$180 million per firm is a fucking joke. It's a drop in the bucket.

The top five financial institutions are handing out OVER 90 billion in bonuses THIS YEAR.

90 billion over ten years is a fucking joke.

[LiberalLions]

14. Tax All

Is there a way that we can tax 100% of their bon., and tax their income in a way that no one that works for a big bank makes no more than $75,000 a year, until the 24 trillion is paid back