Obama proposes 10-year, $30 billion bank tax

[ProSense]

Obama floats $30 bln bank tax as TARP costs shrink

(Reuters) - The Obama administration is proposing a much smaller $30 billion tax on the largest financial institutions, in line with shrinking U.S. corporate bailout costs.

The "Financial Crisis Responsibility Fee" in the proposed fiscal 2012 budget would collect $30 billion over 10 years to recoup the costs of bailing out troubled financial institutions during the financial crisis.

This compares with the administration's proposal last year to collect $90 billion over 10 years.

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Dean Baker: President Obama Proposes a Bank Fee Equal to 20 Percent of Goldman's Annual Bonus Pool

The Washington Post noted that President Obama's budget called for a $30 billion bank fee to recoup losses from the TARP. It would have been helpful to give readers some context for this number.

It would raise approximately $3 billion a year, this is less than one-fifth the size of the $17.5 billion bonus pool at Goldman Sachs in 2010.

[dkf]

1. Why don't they just create a new tax for bonuses period?

Taxing an entire industry to specifically hit the Goldman bonus pool seems ridiculous.

[ProSense]

2. Well,

"Taxing an entire industry to specifically hit the Goldman bonus pool seems ridiculous."

...it's not the entire industry and the target isn't just Goldman.

From the OP: "$30 billion tax on the largest financial institutions"

In fact, it would be great to see it go back up to $90 billion.

[msongs]

3. yeah but his republican best friends would not like it nt

[dkf]

4. Yet the animus seems aimed specifically at Goldman.

If we want to look at who created the housing bubble the government needs to take a hard look at their own practices and what they are still doing to prop things up.

[ProSense]

5. Dean Baker has his opinion.

The program is aimed at the top financial institutions, not the industry.

What's the problem here? Are you against taxing big banks?

[dkf]

6. Taxing out of hate or envy or punishment or dislike seems wrong to me.

I'm interested in fairness.

I don't think we should tax the auto industry extra either.

If we want to do it to raise revenues then it shouldn't be industry specific. I can see raising fees to fund oversight or a fund to help dismantle large failing banks but that shouldnt be funds that go to the general treasury.

I also don't believe in super specific tax loopholes for particular industries.

[ProSense]

7. What?

Bank of America Agrees to Pay $410 Million to Settle Overdrafts Lawsuits

"I'm interested in fairness."

I'm interested in ensuring these greedy predator bastards pay back the bailout money and stop receiving tax breaks while they rip off consumers.

Do you think that's fair?

[rpannier]

10. I hadn't given you a heart yet

But I liked this so much I had to give

[ProSense]

11. Thanks.

That's very sweet and I really appreciate it.

:)

[dkf]

13. There needs to be recourse, not a tax.

Why is it fair that those who get ripped off never get compensated but a tax against the industry go to the general fund?

I don't get that.

[madmom]

8. When my hubby was working and got any kind of bonus from his company, it WAS taxed at a higher rate.

If I remember correctly it was called a bonus tax.

[midnight armadillo]

9. How about a tax on stock trading

Hit those hyperfast traders right in the nuts.

[WolfoftheWild]

12. but, but, I thought Obama only wanted to steal from the poor.

:sarcasm:

[davidpdx]

14. I'll vote for that

Along with beating over the head for their past behavior.