The Conservative Cave
Current Events => Politics => Topic started by: Chris on January 14, 2010, 10:20:13 AM
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Rep. Peter Welch (D-Vt.) will introduce legislation that would impose a 50% tax on excessive bonuses at firms that received bailout funds.
The "Wall Street Bonus Tax Act" would apply only to bonuses over $50,000, and would use the tax revenue to support loans to small businesses.
"As most Americans struggle to endure a long and wrenching recession, the same Wall Street bankers who came to the American taxpayer with hat in hand are now preparing to pocket record-breaking bonuses,†said Welch. “Financial firms that received taxpayer assistance must remember that they owe their return to profitability to hardworking Americans.â€
Reports this week indicated that a handful of the largest firms receiving TARP funds--Citigroup, Morgan Stanley, Chase, Goldman Sachs, and Bank of America--will pay out $90 billion in bonuses.
The White House has expressed dismay at such payouts. Obama has repeatedly said that many Wall Street firms "still don't get it." One of the president's top economic advisers said this weekend she was outraged by such bonuses.
http://thehill.com/blogs/blog-briefing-room/news/75459-dem-congressman-introduced-50-tax-on-bonuses
Yeah... who didn't see this coming?
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Wonderin' about how much money Lord Zero has spent with his one-party-every-three-days agenda. :whatever:
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Where's the incentive to work hard if they're just going to take such a huge chunk of your bonus away?
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Where's the incentive to work hard if they're just going to take such a huge chunk of your bonus away?
Haven't these companies paid this money back already?
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Haven't these companies paid this money back already?
I'm not sure, but I know some have.
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Bonuses are already taxed at a ridiculous rate - 33%.
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Haven't these companies paid this money back already?
Some have and they have also paid interest on the money they were loaned.
What about the bonuses paid to Fannie and Freddie execs? They shouldn't even get bonuses since thboth are still getting bailout money from the taxpayers.
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Aside from there being something just fundamentally messed-up about this, it seems like since all the superbanks were more or less forced to participate in TARP to mask which were in the really deep doo-doo, this is attacking an entire level of the money chain so it will inevitably be passed on to customers since there is no competitor at that level who wouldn't be affected, hence no economic check-and-balance which would prevent passing the cost down in some form. Therefore, there's nothing to keep the additional charges from just being levied on the customer base, which effectively increases the cost of borrowing and other financial transactions.
I can understand the Populist appeal of it, after all the joyride of risk without consequences at the level we're looking at is what brought the whole system to the brink of disaster. Of course the same is true of Freddie Mac and Fannie Mae, as well as AIG, GM, and Chrysler, who benefitted as well from that psychology but are not targeted by this tax/fee. I expect this law or something similar will pass just on its appeal to the short-range thinkers, and then be an anchor on commercial credit from the day it passes until it's repealed (If ever).
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Some have and they have also paid interest on the money they were loaned.
What about the bonuses paid to Fannie and Freddie execs? They shouldn't even get bonuses since thboth are still getting bailout money from the taxpayers.
A related article.
http://finance.yahoo.com/news/Obama-tells-banks-We-want-our-apf-1137481979.html?x=0&sec=topStories&pos=main&asset=&ccode=
"What I'd say to these executives is this: Instead of setting a phalanx of lobbyists to fight this proposal or employing an army of lawyers and accountants to help evade the fee, I'd suggest you might want to consider simply meeting your responsibility," Obama said.
The president is proposing a tax of 0.15 percent on the liabilities of large financial institutions. It would apply only to those companies with assets of more than $50 billion -- a group estimated at about 50.
They would have to pay up even though many did not accept any taxpayer assistance and most that did have repaid the infusions.
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A related article.
http://finance.yahoo.com/news/Obama-tells-banks-We-want-our-apf-1137481979.html?x=0&sec=topStories&pos=main&asset=&ccode=
Lord Zero is even trying to tie the bankers to the GOP, even though the DimRats and he personally received more campaign cash from them.
"The financial industry has even launched a massive lobbying campaign, locking arms with the opposition party to stand in the way of reforms to prevent another crisis," Obama said.
the hill (http://thehill.com/homenews/administration/75853-obama-to-raise-90b-with-new-financial-fee)
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no surprise here at all. They've been telling people for over a year this would be happening.