President Barack Obama is intent on paying taxpayers back for the bailout funds banks received over a year ago and he’s thinking of doing so by taxing the banks. The tax would help ensure that the funds be paid back as some begin to doubt that the banks will be able to pay back the funds as promised.
Getting Bank TARP Funds is Priority #1
When the $700 billion Troubled Asset Relief Program (TARP) went into effect in October 2008, there was always an intention for the banks that were saved from bankruptcy to pay the taxpayers back. However, as time has evolved, some are questioning the banks’ ability to do so, even after some banks have already started the repayment process.
The rumor that some banks wouldn’t be able to repay was due in part to Treasury Secretary Tim Geithner, who said that he believed companies like AIG, GM and Chrysler would not be able to pay back what they borrowed. To ensure that at the very least banks do, he is proposing a tax that would be imposed on banks to get the money back another way.
The New Tax for Banks
While the tax is more of a possibility at this point than a probability, it is something that Obama hopes could ensure he retrieves the bailout funds and avoids adding more to the deficit. In the TARP bill, he added a provision that would call for Congress to repay the funds if the banks couldn’t do it.
However, this provision wouldn’t go into effect until five years after TARP went into effect. In other words, Congress could consider this action until the end of 2013. Obama wants the funds paid back sooner.
There is no word at this point on whether the possible bank fee will get a spot in Obama’s fiscal year 2011 budget – and if it did, what the fee would be. Also, there is some opposition to the fee from those who feel that the increased costs could weaken the economy.
Since there is no official word on what’s to happen, we’ll just have to wait, watch and hope that taxpayers won’t somehow be on the hook for what isn’t repaid.
Do you think a bank tax will make a difference?
yay! that’s some good news – banks need to pay back!
I know! I mean I don’t even understand why we even bailed them out in the first place!
Obama wants the funds paid back sooner…well so do I. They say the ‘intention’ is to pay back the goverment, but it should be a law. Why are we giving money for bailouts, if we don’t even have proof that this will help them get out of the Red? I’d like to see more thought and regulation before we just bail people out with taxpayer dollars.
Smoke and mirrors Ladies and Gentlemen! That is all that this ever is. Watch this and vote for me, as I pull your attention to a direction that is away from the real problems. Cloak and deception … that is the name of the game for all the politicians. Watch this while I use slide of hand to steal the election and everything else.