Monday, January 18, 2010

The Folly of Taxing Banks

http://mobile.bloomberg.com/apps/news?pid=2065101&sid=a2qItTskcWQk

Taxing TARP Banks -- A popular idea - but costs get passed on and banks offer fewer services as a result......

“Using tax policy to punish people is a bad idea,” JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon , 53, said after testifying yesterday at a hearing of the Financial Crisis Inquiry Commission in Washington. “All businesses tend to pass their costs on to customers.”

“The tax will penalize the firms who repaid TARP with interest and those who never even accepted it to begin with,” said Scott Talbott , senior vice president of government affairs for the Financial Services Roundtable, which represents large banks. “It will decrease the availability of loans and limit economic recovery.”

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