So here is the deal in the onset of the Obama administration’s new tax against big banks. Wall Street is gearing up to fight back. The Securities Industry and Financial Markets Association, the Wall Street lobbying group, has gone and hired a Supreme Court Lawyer to see if any of these new proposals are in any way unconstitutional. What the group is attempting to do is argue that big banks are being singled out. The tax in question would affect 50 of the biggest firms on Wall Street, and raise an estimated $90 billion for Uncle Sam over the next decade, which President Obama says will go to paying back some of the U.S deficit.
The bank tax known as the “Financial Crisis Responsibility Fee,” will be included in President Obama’s 2011 budget proposal. As of now details and language of the proposed tax are still being developed, which makes this the preparing stage from battle. What the actual plan of action will be is still to be seen, but I can guess it will be quite an interesting fight.
“We oppose this very targeted and punitive tax, especially when it affects firms that have either already repaid, with interest, their TARP funds or never took TARP funds in the first place,” said Andrew DeSouza, spokesman for the Securities Industry & Financial Markets Association. Businesses fear that the tax will soon trickle down the American public, while state officials say they are merely making things seem worse than they really are. I guess we will see, but what is certain is that if Wall Street is right, then there will be a lot of angry Americans to deal with.