In an effort to respond to the outrage over the record profits and bonuses being paid out to executives of financial institutions that received TARP bailout funds, President Obama has announced his support for a tax on the liabilities held by financial institutions that hold more than $50 billion of consolidated assets.
Under the new tax, banks would be required to pay a tax of about .15% of their covered liabilities per year for at least 10 years. Over the duration of the tax, an estimated $117 billion will be raised, which will go towards paying down the national deficit.
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