Dodd-Frank Wall Street Reform Bill Amended To Eliminate $19 Billion Bank Tax (You Will Cover Cost Instead)
Finreg ran into trouble because Robert Byrd died, and 3 Republicans, most notably Scott Brown announced intent to vote 'no' because of $19 billion in bank fees that were attached to the legislation literally in the final hour.
What's the big deal about a tiny $19 billion in total bank taxes to be collected from the 100 largest banks over a ten year period?
First, the $19 billion is needed to pay for implementation of the bill itself -- those are the assumed costs over 10 years, and the banks were (and should be) expected to pay since, you know, they are the ones who caused the freaking crisis in the first place. Now onto the objections from Brown, Collins and Snowe -- beholden to and captured by the banking industry, they don't feel the banks should have to pay this relatively small annual tax.
Not too surprisingly then, Dodd and Frank re-convened the conference committee this afternoon to find an alternative funding mechanism for the $19 billion in expected costs. And guess who was chosen to pay for the bill -- you were.
Dodd and Frank substituted TARP funds for the bank tax. So taxpayer funds originally intended to buy troubled assets from banks will now be used to cover the costs of regulating the TBTF banks that caused the crisis.
It's a super-galactic circle jerk where the taxpayer pays for everything, the banks nothing, and we're just supposed to smile, while they cash million dollar bonuses with our money.
If we can't get banks to pay $19 billion, we have absolutely zero chance of ever solving our long-term fiscal challenges.
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WASHINGTON (MarketWatch) -- The sweeping Dodd-Frank bank reform bill was amended Tuesday by a joint House-Senate conference committee to change the way the bill is funded, in order to address the objections of several key Republican senators.
Under the proposal by Connecticut Sen. Chris Dodd, the projected $19 billion cost of re-regulating the financial system and paying for the possible liquidation of a large bank would be paid with unspent funds in the Troubled Asset Relief Program and by an extra premium charged to large banks by the Federal Deposit Insurance Corp.
The amended bill will now go House and Senate for their approval. Democratic congressional leaders hope the bill can be passed this week.
Republicans on the conference committee denounced the new funding method as "fraudulent," "smoke and mirrors" and an "affront to the American people." They said the TARP funds are obligated to deficit reduction, and the FDIC funds are obligated to pay depositors of failed banks.
"How do you spend the money twice?" asked Sen. Judd Gregg, a New Hampshire Republican.
Jun 30, 2010 at 4:51 AM
Reader Comments (17)
http://www.bloomberg.com/news/2010-06-29/-i-was-careless-says-republican-candidate-seeking-obama-s-senate-seat.html
http://www.bloomberg.com/news/2010-06-30/financial-bill-is-politics-in-worst-sense-commentary-by-richard-a-posner.html
http://www.bloomberg.com/news/2010-06-30/volcker-said-to-be-disappointed-with-final-version-of-rule-named-after-him.html
http://www.bloomberg.com/news/2010-06-29/house-to-vote-to-restore-jobless-benefits-after-dispute-over-u-s-deficit.html
Commentary: The truth about jobs, the market and U.S. socialism
http://www.marketwatch.com/story/the-three-biggest-lies-about-the-us-economy-2010-06-29
http://www.marketwatch.com/story/derivatives-group-sees-1-trillion-regulatory-hit-2010-06-29
To meet Republican objections, funds would come from TARP, FDIC
http://www.marketwatch.com/story/dodd-frank-bill-loses-key-supporter-over-bank-tax-2010-06-29
Priceless.
US scraps plan for $19bn bank fee
http://www.ft.com/cms/s/0/167b2748-83b3-11df-b6d5-00144feabdc0.html?ftcamp=rss
http://thehill.com/blogs/blog-briefing-room/news/106371-scott-brown-says-hell-continue-to-review-wall-st-reform-over-recess
Why should we trust the IMF?
The IMF is shouting about the need for austerity today, but it was strangely quiet during the build-up of the bubble that got us here
http://www.guardian.co.uk/commentisfree/cifamerica/2010/jun/28/useconomy-imf
Don't these people have ADVISOR'S?
@RLR
It is Viagra pill, Nancy looking for him all the time:LOL
Below is an email I received that I felt was worthy to pass on. If, however, you find that you disagree with any or all of this, please simply delete it, and save the whinny attempts at justification.
This is about as clear and easy to understand as it can be – please read it!!
The article below is completely neutral, ...not anti Republican or Democrat. Charlie Reese, a retired reporter for the Orlando Sentinel has hit the nail directly on the head, defining clearly who it is that in the final analysis must assume responsibility for the judgments made that impact each one of us every day. It's a short but good read. Worth the time. Worth remembering! 545 vs. 300,000,000 EVERY CITIZEN NEEDS TO READ THIS AND THINK ABOUT WHAT THIS JOURNALIST HAS SCRIPTED IN THIS MESSAGE. READ IT AND THEN REALLY THINK ABOUT OUR CURRENT POLITICAL DEBACLE. Charley Reese has been a journalist for 49 years.
545 PEOPLE -- By Charlie Reese Politicians are the only people in the world who create problems and then campaign against them.. Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits? Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes? You and I don't propose a federal budget. The president does. You and I don't have the Constitutional authority to vote on appropriations.
The House of Representatives does. You and I don't write the tax code -
Congress does. You and I don't set fiscal policy
Congress does. You and I don't control monetary policy
The Federal Reserve Bank does. One hundred senators, 435 congressmen, one president, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country. I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank. I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a Senator, a Congressman, or a President to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes. Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party. What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits..... The President can only propose a budget.
He cannot force the Congress to accept it. The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, NOT THE PRESIDENT, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to. It seems inconceivable to me that a nation of 300 million can not replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist. If the tax code is unfair, it's because they want it unfair. If the budget is in the red, it's because they want it in the red .. If the Army & Marines are in IRAQ , it's because they want them in IRAQ.
If they do not receive social security but are on an ELITE Retirement Plan not available to the people, it's because they want it that way. There are no insolvable government problems. Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power.
Above all, DO NOT LET THEM CON YOU into the belief that there exists disembodied mystical forces like "the economy, inflation, or politics" that prevent them from doing what they take an oath to do! Those 545 people and they alone, ARE responsible!!! They, and they alone, have the power.. They, and they alone, should be held accountable by the people who are their bosses. Provided the voters have the gumption to manage their own employees... We should vote all of them out of office and clean up their mess! Charlie Reese is a former columnist of the Orlando Sentinel Newspaper. This might be funny if it weren't so darned true. Be sure to read all the way to the end: Tax his land, Tax his bed, Tax the table, At which he's fed. Tax his tractor, Tax his mule, and Teach him taxes Are the rule. Tax his work, Tax his pay, He works for peanuts Anyway! Tax his cow, Tax his goat, Tax his pants, Tax his coat. Tax his ties, Tax his shirt, Tax his work, Tax his dirt. Tax his tobacco, Tax his drink, Tax him if he Tries to think. Tax his cigars, Tax his beers, If he cries Tax his tears. Tax his car, Tax his gas, Find other ways To tax his ass. Tax all he has. Then let him know, That you won't be done Till he has no dough. When he screams and hollers; Then tax him some more, Tax him till He's good and sore. Then tax his coffin, Tax his grave, Tax the sod in Which he's laid... Put these words Upon his tomb, 'Taxes drove me to my doom...' When he's gone, Do not relax, Its time to apply The inheritance tax.. Sales Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service Fee Tax Gasoline Tax (currently 44.75 cents per gallon)
Utility Taxes
Vehicle License Registration Tax Telephone Federal, State and Local Surcharge Taxes Telephone Recurring and Nonrecurring Charges Tax STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. What in the hell happened? Can you spell 'politicians? 'I hope this goes around THE USA at least 100 Times!!! YOU can help it get there!!! GO AHEAD - - - BE An American.