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Obama May Tax Banks Who Got TARP

From an artfully discreet Associated Press:

AP source: Obama considers levy for rescued firms

By Philip Elliott, Associated Press Writer

January 12, 2010

WASHINGTON – Targeting an industry whose political deafness has vexed his administration, President Barack Obama is weighing a levy aimed at recovering tax dollars from government-rescued financial institutions.

The proposed levy could put Obama on the popular side of public opinion that is decidedly against Wall Street and angry over shortfalls in a $700 billion bank bailout fund.

In case you are wondering, ‘levy’ is the word to use when you don’t want to say the ‘T-word.’ But a levy is simply a tax.

The Oxford English Dictionary defines ‘levy’ as: levy, n. 1. The action of levying: a. The action of collecting an assessment, duty, tax, etc.

Isn’t it funny how the AP chose to avoid the word tax in the headline or the first paragraphs of this piece?

A senior administration official said Monday that Obama would seek modifications to the law that sent billions in bailout money in 2008 and 2009 to a flailing Wall Street that was approaching collapse. The government official spoke on the condition of anonymity to discuss the president’s thinking.

“Seek modifications”? The AP still can’t say the T-word.

The idea received an early boost from Speaker Nancy Pelosi, the top Democrat in the House, where there have been calls for a hefty tax on bank bonuses.

"While we have not seen any specific language from the administration, Congress will certainly examine any serious proposals to lower the deficit and recoup even more of the TARP funds for the taxpayers," said Nadeam Elshami, a spokesman for Pelosi, D-Calif.

Yes, certainly lowering the deficit has always been the top priority for Ms. Pelosi.

The 2008 law that created the Troubled Asset Relief Program requires the president to seek a way to recoup unrecovered TARP money from financial institutions, but five years after the law was enacted. It does not specify how the money should be recovered

Last we heard the Obama administration was bragging that all of the TARP money would be paid back by the banks (although, not by the automakers), and that the government would make a tidy profit.

In fact, it is this very paid back money that has already been grabbed by Nancy Pelosi and the Democrats for another (third? fourth?) stimulus package?

So why are they now talking about taxing these banks to recover TARP money?

(And, lest we forget, a lot of these banks did not want any TARP money in the first place. They were forced to take it.)

Government officials have conceded that they don’t expect to recoup billions in TARP money used to rescue insurance conglomerate American International Group Inc. and the auto industry. Banks have been repaying their infusions, in part to get out from under compensation limits imposed on the bailout recipients. Banks have also paid dividends from the government help.

The administration is projecting the losses to the government from the bailout program will be about $120 billion, most of it due to auto and AIG assistance

And yet this article is about a possible tax on banks, not automakers or insurance companies like AIG.

And, for the record, why can’t the government force GM and Chrysler to repay TARP? They own them.

It is unclear how the administration would seek to recoup shortfalls due to TARP infusions into the auto industry or AIG. And any fee could potentially be imposed on banks that have already repaid their TARP infusions in full. Congress would have to approve any fee plan

Finally, even the AP has to admit it doesn’t make any sense. So of course Congress will pass it.

The more nonsensical, the more unfair the better.

They just won’t call it a tax. – It’s a levy!

Probably they’ll even call it an economic stimulus.

This article was posted by Steve on Tuesday, January 12th, 2010. Comments are currently closed.

12 Responses to “Obama May Tax Banks Who Got TARP”

  1. BillK says:

    Next up – more Government penalties for any person or business that dares not be dependent upon the Government.

    I don’t understand why anyone would start a new business in this environment, and why existing business owners don’t just close up shop.

    The Government will be the source of all things, and any attempt to circumvent them will be met with severe financial penalties, so don’t even bother.

    All the time the American public will be cheering on the assault on the “rich” and “successful.”

    Why fight it? It’s what the majority wants…

  2. proreason says:

    You would think private business would get the idea after a year of this.

    But of course they won’t.

    Instead they will circle around the decaying carcass of capitalism and try to strip off all that they can before the bones are clean.

  3. Tater Salad says:

    We now have 30 more czars to move the progressive/socialist Obama agenda:

    http://canadafreepress.com/index.php/article/18890

  4. RickCaird@CairdConsulting.com says:

    You mentioned the big kicker. Paulson and Geithner basically forced many banks to take the TARP so as to not signal which banks that were in trouble. So, now we had insult to injury and our “tin eared” President is planning to tax the victims. Lovely.

    Rick

  5. Confucius says:

    Don’t feel sorry for any of them–particularly Goldman Sachs.

  6. Liberals Demise says:

    Barrys version of blood money.
    And Al Capone went to prison for what?

    This is how to hold up a bank without a pistol……….just write a note and slip it to the bank president!

  7. mr_bill says:

    TARP is never going away so long as this group of libs has any say in it. They will continue to find new uses for the funds and will continue to declare arbitrary fees and taxes on this group and that group to ‘replenish’ the fund. It will declare this industry needs to take the funds or that industry must take the funds and will dictate the activities of any and all recipients. I can’t imagine a better tool of control for the statist.

  8. retire05 says:

    NEWS FLASH — NEW FLASH

    SEC order helps maintain AIG bailout mystery

    New York, Jan. 11 (Reuters) – It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG) because of an action taken last year by the Securitye and Exchange Commission.

    “In May (that would be after Obama was in office, friends) the SEC approved a request by AIG to keep secret an exhibito to a year-old regulatory filing tht includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tenos of billions of dollars to big banks like Solciete Generale, Goldman Sachs, Deutsch Bank and Merrill Lynch.

    The SEC’s Division of Corporation Finance, in granting AIG’s request for confidential treatment, said the “excluded information” will not be made public until Nov. 25, 2018, according to a copy of the agency’s May 22 order.”

    Now, Just in case any of you have forgotten, this comes on the heels of learning that Timothy Geithner was instrumental in helping AIG pay certain banks (Goldman Sachs was one) 100 cents on the dollar while other banks were required to take serious haircuts.

    THE – MOST – TRANSPARENT – ADMINISTRATION – IN – THE – HISTORY -OF – OUR- NATION – AT -WORK.

  9. Chuckk says:

    Every problem in the country can be solved with a tax, a fee, a fine, or in this case, a levy. Funny how that works.

    • joeblough says:

      The pigs in DC must have a talent I lack.

      They’ve gotten a huge portion of the country to go along with a program that I have been trying to promote for decades with no success whatever.

      It goes like this:

      You can solve any problem in your life by giving me more of your money.

      Now for some utterly mysterious reason, nobody seems to believe me when I say that.

      But for our alleged representatives … no problem.

      Maybe I have to work on my delivery … get a teleprompter or something.

  10. joeblough says:

    Between our compulsive power lust and our addiction to taxes, this country is in serious need of a 12 step program.

    ===========

    I will repeat, as I often do, Red Hussein is America’s first truly and committedly ANTI-AMERICAN president.

    I think he may be worse than Gimpy Roosevelt and Jimmuh-the-Peanut Carter put together.

    Impeach, impeach, impeach.

    Treason is grounds for impeachment !


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