Market Overview

The Federal Government Is Considering Imposing A Bank Tax

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The federal government is contemplating hitting the big banks with a bank tax. The government wants to tax banks a whopping $90 billion dollars over the next 10 years. The government is trying to recoup losses from the TARP fund.

According to President Barack Obama, "we need to impose a fee on the banks that were the biggest beneficiaries of taxpayer assistance at the height of our financial crisis so we can recover every dime of taxpayer money,"

I understand the government wanting to regain lost money in AIG, GM, Fannie Mae, and Freddie Mac. However, it makes no sense for the banking industry to repay these losses at the current time. The government should wait for an economic rebound before considering imposing any new taxes on the financial sector.

 

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