Thursday, January 14, 2010

Obama-gogue: let's tax the banks

Populist demagoguery is never pretty, whether from Dems or GOP'ers...

Today, Obama proposed a tax on large banks and linked it to "obscene" bonuses paid to CEOs.
With policy proposals like his, he needs to be careful in throwing around labels like "obscene".

From MSNBC...

President Barack Obama told banks Thursday they should pay a new tax to recoup the cost of bailing out foundering firms at the height of the financial crisis. "We want our money back," he said.

And apparently, it doesn't matter from whom he takes it-- as long as it's a convenient target politically. Also, I'd like to see Obama be as tenacious when it comes to increases our taxes in the future!

In a brief appearance with advisers at the White House, Obama branded the latest round of bank bonuses as "obscene." But he said his goal was to prevent such excesses in the future, not to punish banks for past behavior.

Huh? How is this related to bonuses at all? How could it possibly prevent this in the future?

Advisers believe the administration can make an argument that banks should tap their bonus pools for the fee instead of passing the cost on to consumers.

Get some new adviser then! "Make an argument"? What-- theoretically? Good luck with trying to finagle that. In any case, in practice, this is quite unlikely. And the amount of bonuses is nowhere near the level of this tax.

They would have to pay up even though many did not accept any taxpayer assistance and most that did have repaid the infusions.

Wow...ain't that ugly! Making the responsible pay and subsidize those who were irresponsible-- neither equitable nor efficient, a common combination for President Obama and the Dems.

And more efforts to impose costs on business during a difficult recession. Brilliant!

Why not take money from Ford and give it to GM and Chrysler?
Why not include Fannie Mae and Freddie Mac?


At January 14, 2010 at 9:46 PM , Blogger Ginger said...

AHH- Sometimes when I read your blog, my blood pressure rises too high!!!


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