New York (CNNMoney.com) - The White House is considering a tax on financial institutions to ensure that taxpayers who bailed out banks get paid back, a senior administration official said Monday.
The law that created the $700 billion Troubled Asset Relief Program empowered the president to ask Congress to recoup money if bailouts were not paid back in full.
TARP dictates that the Office of Management and Budget consider such action five years after TARP went into effect in October 2008 to prevent the federal bailout from adding to the deficit.
When the TARP bill was hastily debated, the provision was key to winning enough support from wary lawmakers to push the bill through Congress.
Robert Gibbs, the White House press secretary, would not discuss how a possible bank fee would fit into Obama's fiscal year 2011 budget, which is set to be released next month. "When it comes back from Kinko's, we'll be able to talk about it," he said.
But Gibbs said it is the president's "goal" to ensure the "money that taxpayers put up will be paid back in full."
From CNN Politics
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Tax the banks lke they're taxing me with these dam overdraft fees.
I really hate to tell you this Mr. President, but whenever you tax a corporation or industrial complex, they just pass it on to the consumer in rate or fee hikes. We end up paying for it anyway.
You want to recoupe the money, demand the money back now (60 days) or you start selling their property. There are so many bank properties with corner lots, which is the most prime of commercial properties.
Do what they do, just foreclose and take it.
Won't the banks just pass the tax onto consumers?
Shocking.....not!!! And THAT was what we could have had one heart beat away from the Presidency? God was definitely watching over us.
Hellooooo boys, it's a whole new ball game with this administration! We loaned you money; we're keeping track of it; seeing who's paying it back, or not. Who's late with payments, and who is giving themselves bonuses and NOT paying us back. WE WANT OUR MONEY BACK!!!
Change that I CAN BELIEVE IN!! Thank you Mr. President!!
Before we start hearing from Repubs yelling at Obama for this., REMEMBER that BUSH passed this one. And he pushed it through without a plan to recoup it. Remember when Bush and McCain both said (with a couple days of each other) "The fundamentals of our economy are STRONG!". One week later the banks starting falling like dominos. Bush ran to fork over the bailout money and everyone said "Hey! is there a plan to recoup it" The Bush response..."well uhh yeah, we plan on, umm, well, they fooled me three times, I fooled them once. Um..." Two months later year-end bonuses were paid to Wall Street execs.
Good for Obama.
Let's see who among the soiled diaper righties are going to cry foul over this?
An excellent idea. Put the cost in the same place where the benefit fell.
OOOOOOOOHHHHHHHHH BOY.......... more rate increases and fees imposed by the banks on the consumer of there product = credit cards and loans....... wow i am really starting to like the way Obama thinks to solve this little diddy...... is it time to impeach the whole democratic party yet?????? start in 2010 and finish it up in 2012... hopefully we will still be here
No more taxes! The way that you recover the money that was lent to banks is to make each pay back exactly what they borrowed (with interest)....once the loan is paid back then they go on with their business without government interference.....the problem with a new tax is that it goes on for ever and they pass it on to the consumer so that you are taxing me!
"No new taxes on the middle class." – Obama 2008 campaign promise
"It all depends on how you define the word tax" -Obama 2009 reality
Totally agree this should be done. We should also claw back the bonuses, and introduce cramdown legislation that gives judges the ability to reduce principal balances on mortgages. Companies can walk away from bad investments and stiff their investors but homeowners aren't encouraged to walk away from their undercover houses. When I'm ready to relocate for a job, I wouldn't bother selling my house because I'll have to bring money to the table. I will leave it for the bank to deal with. Even though I did everything right my home is still 50k underwater. I've put down 20% and done thousands of dollars in upgrades that will never be recouped. My bank wouldn't even refinance to a lower rate. Well, they can have this hot piece of nonsense back and I could care less if my credit gets messed out. I'm out enough money as it seems; better to stop the bleeding rather than to be a fool and protect my "credit score". Go cash, trash the cards and dump the underwater house.
I'm sure the Rethuglicants will hate THAT! Wow, if all the TARP money gets paid back then they can't use it against Obama and the dems at election time (even though it was the previous congress and president who actually did it). Just wait and see. They will find some reason to claim that the repayment is some evil Democrat plan that was designed to ruin the country and promote sloth.
Yes!!!
Any chance this smart White House can figure out a way to recover the estimated $60 billion a year in Medicare fraud before we taxpayers have to pump more money in to another liberal entitlement progam engendered by the Health Care bill that Obozo is pushing so hard on? Or are they going to play on the usual liberal class warfare theme that their drug addled followers believe.
What a freakin' joke! Exactly where does the First Genius think the banks are going to get the dough to pay the tax? One guess – FROM THEIR CUSTOMERS!!
Obozo is running a shell game, and we all are the marks.
Obama campaigning for Reid will produce the same results as Obama campainging for Corzine. Obama and Reid = 2 out of touch losers.
Negative spin put on this in 3....2....1......
Let me guess what the argument against this is: The banks will turn around and charge the customer.
If that's the case blame the bank that needed to borrow the money, not the man asking for that money back.
Ahhhh, it's no use anyway, so let's see what the GOP alternative to this is..........
chirp chirp, chirp chirp.......
Will the banks also have to pay for the thousands of EARMARKS that were in that bill? Just wondering...
Democrats solution to everything is to TAX and SPEND, then TAX and SPEND, then TAX and SPEND. Then when they realize it doesn't work and puts us into financial hell, they say they need to TAX and SPEND some more.
Yes, that's right, tax banks which they will pass on to their customers in the form of higher fees. Really smart.
Great, so now the banks will have to charge us more to make up for the loss of the Odumbo tax hike. This guy doesnt get it.
we should tax congress
the just dont get it
Great, as long as banks adhere to the law that takes effect in February.
what about the tax on GM