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."
If I read that right, and I like to think I did, the banks have 5 years to pay off the loan. It hasn't been 5 years. They only have 41 billion to go? They'll be able to pay it off on time as long as the Democrats stay out of their way. Sorry Obama....find someone else to tax.
Now as far as GM and US auto makers....kiss that money good-by. Why would banks have to pick up the tab for that failed venture?
Reason? Obama knows he doesn't have enough tax dollars to cover his little socialist health care, cap and trade and the rest of it. They tried to create a villain in the banks so that the rest of the mob will go along with whatever Obama says….otherwise we go broke just like Chicago.
Obama's back door politics at its best.
Obama you just dont get it, tax the banks, banks raise rates, rates effect the price people pay, So basically Obama you are TAXING the people.
Obama Just Doesnt Get It !. Obama is an Idiot.
The total stupidity of this President and the lemmings on this site is hilarious, but dangerous to the US. The idea that the cost of your business rises, because Obama wants more of your money, and you will just eat the cost and not pass it on to your consumers, is ludicrous. No business in the world could keep operating like you lemmings dream of. But, then again, I would bet that you lemmings, like your savior Obama, have never ran a business, or held a office in an executive position. That is why Obama is so clueless on how the economy works.
As long as the banks don't pass it along to consumers, I'm fine with it.
I know a lot of people get all up-in-arms about our government interferring with the banking system, but you know what? They've proven that they are irresponsible, negligent and utterly incapable of making decisions that benefit their customers.
So they deserve to have very strict oversight.
Think of it this way: Would a bank loan you money if you gambled away what you had, ran up huge credit card debt, defaulted on your loans and when you did get a little extra money, go blow it on a lavish party or fancy trinkets?
I think we all know the answer to THAT one. And as long as the U.S. Government (i.e., taxpayers) guarantee their deposits, then WE get to call the shots!
Obama has got to be the biggest and dumbest thug to hit Washington in 240 years..And we all thought Jimmy Carter was the dumbest one. Obama makes Jimmy Carter look smart..Why does'nt this NEGRO just go bck to Chicago..
Good idea, tax them 100%.
If you really want to get the banks attention take your money out and go to a local Credit Union. When the customers leave the banks will realize that we all have other options. You may have access to fewer ATM's but you won't get the bank fees and high rates that they charge because they think you will stay with a large bank.
And will this tax also be imposed on GM/Chrysler?
Guess who's really gonna have to pay that tax back? Take one guess, and think hard. It's us, all of us, we have to pay for the failures of others. When is this going to stop? When they who have so much, and we who have so little compared to them, when are they going to stop stealing our money and rights?
Folks.......get ready to pay through the nose in higher bank account and credit card fees. Banks will just pass the tax on to their customers in higher fees. Obama knows that. Next year when you think taxes have only gone up on people making $200K per year take a look at how much it cost you to have your checking account and everything else you are buying. Welcome to the world of hidden Obama/Democratic taxes. Are your eyes bleeding yet?
How can this man campaign on no taxes to the middle class, and then turn around and tax the crap out of them in the name of bailout recoupment and green environment preservation? Not to mention, coming soon: health care taxation.