Obama Eyeing Tax on Wall Street to Pay Back Taxpayers
January 11, 2010
(ChattahBox)—The Washington Post is reporting that President Obama’s new budget may contain a levy on the nation’s largest banks and other financial institutions. The White House is determined to reimburse taxpayers for the federal bailout of Wall Street, and to take steps to reduce the ballooning deficit.
According to a senior White House official, next month’s budget is expected to propose some sort of fee on financial institutions. But the administration is still working out the details, to ensure the fees are not passed on to consumers.
The official told the Post:
“The President has made a commitment to the American people that he will recoup their investment in the financial industry,” said the official, who spoke on the condition of anonymity. “While we have made great progress in recouping a large portion of the investment, consistent with the law, the president will propose a way to recoup additional funds and one of the options is a levy on financial institutions.”
And Press Secretary Robert Gibbs told reporters that Obama sought to find a way to pay back taxpayers for the bailout. “The president has talked on a number of occasions about insisting that the money the taxpayers put up . . . is paid back in full,” said Gibbs.
Against the backdrop of Wall Street’s obscene practice of paying out huge bonuses, after being bailed out by taxpayers, the fees should be politically popular.
See the Washington Post for more.