Obama's New Bank Tax

There is not a day goes by that President Obama and the Democrat Socialists that control Congress don't propose some new tax targeted at one group or another. This time, Obama wants to tax large banks with $50 Billion in assets or more because they needed, or were forced to take government money from the $700 Billion Troubled Asset Relief Program (TARP) to guarantee their financial stability. They only problem is that many of the 50 banks that will be impacted by Obama's new tax have paid back the federal government plus interest, so much so that the government made money on these deals. However, because the federal government will never see the billions again that were given to General Motors and Chrysler to take care of the big auto unions and nationalized Fannie Mae and Freddie Mac, that made huge contributions to Democrat Socialist candidates including Obama, the President now wants to punish the big banks that did pay back the money plus interest.

In Obama's world, the successful must provide for the failures both in business and in society; apparently beyond what they already pay in federal and state income, property and sales taxes of every variety. And, since these banks are profitable and they are paying big bonuses, Obama has decided to punish them for having the nerve to make money. Of course, let's never forget that companies and their employees that make money often pay 40% or more of their income in corporate and personal federal and state income taxes; not to mention estate taxes, taxes on dividends and capital gains etc. etc. etc. Let's face it, we are taxed to death and even after death. In fact, if companies and their employees did not make money and pay all of the confiscatory taxes we now pay, how on earth would state and federal governments have the money to take care of their Peeps and all the public employees on the payroll. It is very obvious that Democrat Socialists frequently forget who is paying all the bills. Instead of attempting to punish those that are successful, government should be saying thank you, thank you.

This additional tax on the 50 largest banks in the country amounts to a 15% surcharge on bank liabilities, excluding FDIC assessed deposits and insurance policy reserves. Smaller community banks and some larger banks with assets of $50 Billion or less would be exempt from this tax along with other companies like GM, Chrysler, Fannie Mae and Freddie Mac that also received billions in TARP money. The intent is to raise enough money to cover the estimated short fall of $117 Billion that the government apparently never expects to get back from these failed companies. This tax would be designed to go beyond 10 years until the money is recouped. Has anyone ever heard of a tax once enacted ever being repealed? And, if the government takes this money from the top 50 banks in the country, it will be at the expense of small business that simply will not be given loans and/or consumers that will face higher credit card rates. There is no free ride. These higher taxes will be passed on to customers one way or another.

Most important, it is becoming very clear that in Obama and the Democrat Socialist's corrupt world, their friends and supporters are excluded from new taxes. These include the big Unions, public employees, nationalized companies and companies that give big contributions to the Democrat Socialists. Other Americans, businesses and companies that don't support Obama and the Democrat Socialists are then required to pay and pay and pay. This is Chicago back room, sleazy, dirty ward politics at its worst, or best depending on your perspective. In my life time, I have never seen the blatant corruption that is rampant in Obama's Washington.

Taxpayers are now on the hook, without any limitation, related to the losses of Fannie Mae and Freddie Mac. The Obama Administration on Christmas Eve removed the $400 Billion cap on their potential losses covered by the federal government. Fannie and Freddie are now being encouraged to lend to Obama's Peeps, once again, which is how we got into the the financial mess we face today. As of now, Freddie and Fannie own or guarantee half of the $10 Trillion in US Mortgages - the really lousy half. Remember, it was Democrat Socialists like Barney Frank, Chris Dodd, Chuck Schumer and Barack Obama that insisted that Fannie and Freddie take on risky loans, which began during the Clinton Administration. Of course, Democrat Socialist politicians were at the top of the list receiving millions in contributions from Fannie and Freddie and as such when George W Bush sounded the alarm bells requesting more regulation of Fannie and Freddie, Democrat Socialists in Congress simply refused to enact regulations. These characters should all be in jail not in Congress.

Obama's new bank tax is just one more in a long list that will retard the growth of our economy and insure that we have high unemployment for years to come. We must take back our country in 2010 and 2012 to put an end to the corruption and all the Democrat Socialist dirty, sleazy deals. The US Constitution requires equal protection under the law not the obvious selection of winners and losers based on vindictive punishment schemes and pay-offs. We must elect Conservatives that support fiscal sanity, lower taxes and less regulation, smaller more limited government, a balanced budget, family values and our Constitution as written by our Founding Fathers not the Congress or the Courts. We must take back our country. We can do it. We must do it.