Obama Taxes Our Patience, Among Other Things
This, despite the fact that the majority of banks which received an infusion of TARP funds have already paid back the money, with interest? Wow, he's a financial genius.
The fact of the matter, if anyone cares to look into this and acknowledge the truth, is that the vast majority of the $117 billion dollar shortfall that Obama claims he wants to recover for "The American People" is not owed by the banks.
General Motors and Chrysler LLC owe $66 billion dollars of the total, and they are not subject to the tax (even though they are losing money hand over fist, and will need more taxpayer infusions to survive). The insurance conglomerate, AIG, owes about $70 billion of it. They would have to pay the tax, but Obama conveniently neglected to mention them in announcing his plan.
There was a reason for that. He has decided to make banks the boogeymen.
This move by Obama was nothing but grandstanding. He has FINALLY realized (or rather, his media people have realized) that Americans think he has been a miserable failure in terms of economic issues.
He also knows that most people see Wall Street banks as evil entities, and hopes to gain empathy from voters by attacking the large financial institutions. Normally he wouldn't care about the voters, save for the fact that the anger at his administration is growing so large that it appears Democrats are going to get slaughtered in the Nov. 2010 elections.
No, friends and neighbors, Obama's bank tax is simply a gift to Democratic politicians up for election in 2010. Furthermore, consider this:
How will a tax on 50 huge banks help you, the ordinary Joe or Jane trying to make ends meet? The money collected will not go to you in any way. It will not reduce your tax burden, ease the credit crunch, or lead to the creation of jobs. In fact, it will do just the opposite.
As large banks are taxed, they will pass the cost onto clients of all sizes. If the client in question is another, smaller, financial institution, this causes several problems. Faced with higher costs, the smaller institutions will close ranks and tighten belts, making credit even more difficult to obtain. If the client in question is a manufacturer or other business (anything with employees) the increased costs will lead to less expansion, a hiring freeze, and possible lay-offs.
Gee, thanks Obama. I know we're all supposed to be stupid enough to praise you for "soaking the rich," but such moves do not practically help the average American one iota. You're trying to look like the savior of "the little guy" when in fact you are screwing him blind.
Just more proof that our current president gives not a damn about anything but his warped ideology.
I hope those deluded souls who applaud taxing the big banks - some of which never took TARP money, some of which were forced to take it, and almost all of which have paid back every dime - can keep the grin on their face when they are forced into foreclosure.