Thursday, January 14, 2010

Proposed Bank Tax

I suppose most of you have heard about the new "Bank tax". Obama wants to tax those big banks that got bail out funds, so we get our money back. Great idea, right? WRONG!!!! First of all, most of those Banks have already paid back the bailout funds, plus interest, so we already  have gotten "our money" back and then some. So why the tax? To punish the achievers!! Most of those bonuses are paid out on contracts signed between the companies and the executives. The executives typically work for $1 a year in salary, and have contracts for bonuses based on how they and the company perform during the year. If the companies have paid back all the bailout funds, I'd say they did pretty good. It is absolutely none of our business what corporation executives make. That is between the company, it's stock holders, and it's customers. If the customers don't like it they can go to another bank. If the stockholders don't like it, they can change the Board of Directors. It's called competition. It's what the private sector does and is what made America the great land of opportunity that it used to be. This a populist push by Obama because, he's pushing his agenda of "let's get those evil guys on Wall Street". It's class warfare and it works pretty good, because a lot of people are envious of someone who has more that they do. It is a deliberate attempt to destroy America as we know it and to turn it into a European Socialist style country where the government controls everything! So you punish those bankers, cut their bonuses, cut their pay, and that does what to your wallet? Absolutely nothing!! But, but, but the banks have all that money and they aren't lending, and that's why the economy isn't recovering. The banks aren't lending because businesses have no idea what kind of new taxes and regulations are going to be coming out of Washington like health care reform, cap & trade, card check, etc., so they are not applying for loans to expand their businesses. They are taking a "wait and see" attitude. If I was planning on expanding my business, I certainly would not do it now. Remember, every dollar taken in taxes by the government is a dollar out of the private sector that could be used for investment, new jobs, etc. The government has never created a single job in the private sector. There has never been a country that taxed itself to prosperity.

P.S. Since this tax will only apply to banks that are worth more than $50 billion, it is also unconstitutional under the equal protection clause of the 14th Amendment, but who cares about that old worn out document any more.

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