On Thursday, President Obama called for a new bank tax; with the stated intent of "repaying the American taxpayer."
"My commitment is to recover every single dime the American people are owed. And my determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at the very firms who owe their continued existence to the American people – who have not been made whole, and who continue to face real hardship in this recession,” said President Barack Obama. “That’s why I’m proposing a Financial Crisis Responsibility Fee to be imposed on major financial firms until the American people are fully compensated for the extraordinary assistance they provided to Wall Street."
The New York Times reported:
"Flanked by his economic advisers at the White House, Mr. Obama used some of his harshest language to date against the resurgent financial industry."
Right off the bat, it should be obvious that "repaying the American taxpayer" is not the primary purpose here. Nancy Pelosi and others in Congress have been greedily eyeing the repaid TARP money and would like to use it for more "stimulus." I certainly haven't heard any talk of cutting us all a check! Secondly, the question arises as to why we would want to punish a "resurgent" industry that is the only bright spot in our troubled economy, just when it's starting to become healthy and make a profit.
I thought the reason that we had to bail out the banks was because they were "too big to fail?" Well not failing in the real world means making a profit, yet Mr. Obama's statement highlights "massive profits" as the reason for the tax, as if profit itself is an evil—which I suppose it is from the viewpoint of those who would remake our capitalist system.
This is about keeping their fingers in the financial industry and nothing more. President Obama is hoping to use class warfare rhetoric to inspire average Americans to grab our torches and pitchforks and join him in his supposed efforts to make the evil banks and rich bankers repay us all. Never mind that the majority of the financial firms that would be targeted by this tax have already repaid the TARP loans with interest—the light at the end of the tunnel is really the Obama Express.
If Washington is so concerned with paying us all back, why not levy a punitive tax against Fannie and Freddie as well? Oh, right, sorry. They are now wholly owned by the government and it does not tax itself.