Oh it’s silly, really. Levying a tax — ahem, fee — on the 50 largest banks in the name of fairness to the American taxpayers. President Obama floated the idea of a bank fee to punish the financial institutions for getting us into so much financial trouble, and justifiably so, to get back TARP money that was used to prop up the banks. However, even those banks which didn’t receive TARP assistance will have to pay this fee. The logic? These banks also indirectly benefited from TARP and its “positive” impact.
Yes, that’s how President Obama rolls. His economic vernacular consists of only one word: tax. If the economy is collapsing, TAX! If jobs aren’t being created, TAX! If the Earth is warming (or cooling?), TAX! If universal health care is required, TAX! If the recession is over, TAX!!!
The flaw in a tax-happy economic policy is that often the burden is shifted to the consumers. The TV manufacturer factors in taxes it has to pay when pricing the TV sets. The banks come out with fee schedules in order to offset the taxes it has to pay. The same goes with that car you want to buy. It all trickles down to the sticker price the consumer sees.
So if banks are having to pay this fee in the near future, you can bet that they will be hiking existing fees or starting some new monthly account fee in order to neutralize the Obama Bank Fee.
The other absurd point to be raised is how the president continues to vilify Wall Street. But guess what? During his 2008 campaign, his top donors include — ta-da! — Goldman Sachs, JPMorgan Chase, Citigroup, UBS, and Morgan Stanley. Aren’t these companies considered the titans of Wall Street? They helped elect Barack Obama, and look where it got them.
It’s not the taxpayer’s business to determine if a bank executive’s salary is too much or if his bonus is outrageous. That’s a case of wealth envy. The shareholders are the ones entitled to complain about executive compensation. Unless you are a shareholder of any of those Wall Street firms, then you should just accept the reality that you weren’t cut out to be a rich bank exec. Happily go back to whatever your lowly paid job is. You’ll go mad if you constantly gripe about other people’s pay. Get over it — you’ll be happier.
Why did Obama come out with the bank fee idea? Well, look at his sorry poll numbers. Heck, people now say they wouldn’t elect him again. None of his policies have improved the economy — ridiculous deficits, more social programs, creeping jobless rate. So why not offer a populist distraction and redirect the negative attention back to Wall Street? After all, Wall Street firms are easy targets.
But you are smarter than that. Don’t get distracted. Wall Street isn’t the problem. Executive compensation isn’t the problem. Big government is. Heavy taxation is. Limitless federal spending is. Stay alert.
