January 14th, 2010
01:00 PM ET
5 years ago

Obama calls for bailout tax

NEW YORK (CNNMoney.com) - President Obama on Thursday called on Congress to tax the largest banks to ensure that U.S. taxpayers don't lose a penny from the federal bailout of the financial, auto and insurance industries over the past year.

The "financial crisis responsibility fee" would target major institutions. It would be levied on those that were the main contributors to the financial crisis and the most significant beneficiaries of the extraordinary actions taken by the Federal Reserve and the Treasury Department.

"My commitment is to recover every single dime the American people are owed," Obama said. "We want our money back and we're going to get it."

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Filed under: Obama administration • President Obama • TARP
soundoff (52 Responses)
  1. Son of Spock

    Didn't the prez say that if you made less than $250k that you would not see a tax increase?

    Won't the affected banks pass on cost of the taxes to the regular working stiffs?

    I guess if both the previous questions are true, I only have one thing to say:

    "You Lied"!

    January 14, 2010 01:38 pm at 1:38 pm |
  2. Dean

    The bailout taxes will just be passed along to the consumer in additional fees and lower interest rates on deposits. If Obama puts additional taxes in place he also needs to regulate(more socialism on the way)the fees and costs to customers.

    January 14, 2010 01:38 pm at 1:38 pm |
  3. TM in CO

    The government bail out was a big mistake. Didn't save people from losing their jobs or their homes. Well it did help the CEO's of those businesses from losing their jobs and homes......................................While the rest of us live in poverty without an offer of help from the governemnt

    January 14, 2010 01:42 pm at 1:42 pm |
  4. Bob in Pa

    BO, you are an absolute idiot. Increasing or levying taxes on any institution will just get passed on to the average American.

    January 14, 2010 01:43 pm at 1:43 pm |
  5. yuri

    Citigroup, Goldman-Sachs, JP Morgan, Morgan-Chase, and the Bank of America will start a pandemonium. It will be a sisyphean task to pressure these blokes to pay up. We have surmised so far that John Mack and Brian Moynihan were relatively saner guys, while Rob Dimon and Lloyd Blankfein have behaved like day light robbers.

    January 14, 2010 01:44 pm at 1:44 pm |
  6. Fitz in Texas

    "We want our money back and we're going to get it.".......If Obama hadn't given OUR money to the banks in the first place, We wouldn't have to worry about getting OUR money back. It was Obama that gave OUR money away in the first place even if WE didn't want him to.

    January 14, 2010 01:46 pm at 1:46 pm |
  7. unshrub

    It's about time, but watch, some republican is going to start screaming about taxing business. We should also tax stock and bond transfers. England does it, and it hasn't hurt their business. Why shouldn't they pay their fair share. The tax system gives them all kinds of lopholes.

    January 14, 2010 01:48 pm at 1:48 pm |
  8. Mike in MN

    The biggest cause of the financial crisis was Fanny Mae and Freddie Mack. But they will be exempt from this tax and in fact congress just recently passed that both of them have unlimited bail out backing from the Federal government to cover unlimited future loses at tax payers expense. Obama has this so wrong that there are no words to describe it. Stupid and incompetant are a start.

    January 14, 2010 01:49 pm at 1:49 pm |
  9. Kevin in Ohio

    TAX TAX TAX. Is this all this guy can do? Oops, I forgot.... SPEND SPEND SPEND.

    January 14, 2010 01:50 pm at 1:50 pm |
  10. John D.

    This is all very well and good and for the first time I applaud Obama for doing something right. I now would like to see that no loop holes allow these people to recoup this money from the people. Otherwise it is just another tax/cost of living increse being passed onto the people/consumers and the bankers and the shareholders who took advantage for so long will not learn a thing. In fact they will learn just the opposite and reap even more of a golden harvest.

    January 14, 2010 01:51 pm at 1:51 pm |
  11. Proud To Be An American

    This is what we call checkmate.

    It would seem that FINALLY Mr. Axelrod is earning his keep.

    This is a great policy move by the President that will also play extremely well as a populist move in the next campaign.

    Can't wait for the GOP'ers to try and assault this "tax" which will make the taxpayers of America whole.

    Also would like to see them try to attack the President as a "spender" when he cut $7B worth of programs .... more than George Bush I might add.

    January 14, 2010 01:51 pm at 1:51 pm |
  12. dirty harry reid

    and spend it on what, more pork barrel projects?

    January 14, 2010 01:52 pm at 1:52 pm |
  13. Enough

    And who does this fool Obama think will be paying for it in the end? this is just Obamas slick way of raising taxes, without directly raising them on us...................how stupid does this man think we are. You raise taxes and fees on a business and it get's passed along to US as usual. What a freakin moron.

    January 14, 2010 01:52 pm at 1:52 pm |
  14. FED UP

    Let's tax Fannie, Freddie, AIG and GM. Those continue to lose money. Oh yeah, Fannie and Freddie are Barney Franks' special projects, Turbo Tax Tim took care of AIG, and of course GM which now belongs to the unions are the special friends of Obummer.

    January 14, 2010 01:53 pm at 1:53 pm |
  15. Fitz in Texas

    "My commitment is to recover every single dime the American people are owed".......When did Obama start caring for the American taxpayer? I must have missed that story.

    January 14, 2010 01:53 pm at 1:53 pm |
  16. lila

    this is smart.

    January 14, 2010 01:54 pm at 1:54 pm |
  17. Nea

    Thats right President Obama we do want our money back these banks are living large and we as Americans many are suffering just to make it, but with this some will still complain and boohoo about the President doing this.

    January 14, 2010 01:57 pm at 1:57 pm |
  18. lalita

    YES!

    January 14, 2010 01:59 pm at 1:59 pm |
  19. The Other Michael in Houston

    You know President Obama, I have been a strong supporter of you but I take issue with this policy. First of you nor George W. Bush should have given these crooks anything. If you have not learned anything President Obama with all the higher education that you recieved, you should have known that trickle down economics, was good theory but can never work in a capitlaist greed driven society. It did not work in the 20th century and it darn sure will work in the 21st century. You and our former President gave greedy crooks more money to continue thier ways of greed and now you are surprised and angry because that money that was supposed to be filtered down to main street never made it. Big shocker there. How about this policy, Wall Street return the money or the government will take your company, liquidate it anduse the money made by selling off your company/bank and return that money to the American people. Now as insane as that sounds, it is still better than your patch work save face plan. President Obama, don't put me in a position of regret. And no Republicans, I still would not vote for any of your suggested candadites, Democrats are horrible, Republicans are flat out terrible. We really need a new group of people that actually care about America.

    January 14, 2010 01:59 pm at 1:59 pm |
  20. Steve in Ct

    Cut me a break. If these folks are going to fork over $ who's $ do you think it'll be. This is quite the POTUS shell game to confuse and take advantage of the American public. He thinks we're too stupid to realize all the money will be from our sacrifices and that we'd think he's getting our money back so we should vote his way. C'mon now.

    January 14, 2010 02:01 pm at 2:01 pm |
  21. obama the liar

    get the money from Dodd and Barney first.

    January 14, 2010 02:02 pm at 2:02 pm |
  22. Mike

    Any tax on banks will be passed on to the clients of that bank in the form of higher fees or higher interest rates on loans. To think otherwise is foolish.

    I am now convinced that our President has no idea how an economy works, or if he does, he doesn't care.

    January 14, 2010 02:04 pm at 2:04 pm |
  23. Tom

    I never thought I'd live to see an American President act like a petulant monarch and try to enact a punitive tax, amazing.

    January 14, 2010 02:04 pm at 2:04 pm |
  24. Four and The Door

    Okay, this is an interesting economic strategy! Okay, that's the wrong thing to call this. Let me rephrase it; Okay, this is an interesting political strategy!

    January 14, 2010 02:05 pm at 2:05 pm |
  25. shmeckell

    Why do the banks have to pay for AIG and GM (which will be funneled down to the costumers)? As far as AIG, do they still sell insurance (but we can’t call it insurance because they would be regulated like an insurance company and not a scam). And if so are they forced to keep a certain amount of capital in the bank for when a large group of bankruptcies hit and they will be expected to pay out money; or did we learn nothing and continue to let AIG sell nothing. They tell you your mortgage is backed but when people foreclose they don’t have any money to pay out and the taxpayers have to bail them out.

    Can someone answer that; is AIG required to keep assets in the bank to pay out like every other insurance company in this country is required to do, or did nothing change???

    January 14, 2010 02:05 pm at 2:05 pm |
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