A5s we get deeper into the realization of the folly of the government bailout of banks and financial institutions – some of which were forced – the government is playing its big card now by proposing taxing many of the largest banks in America, where some like Bank of America (NYSE:BAC), J.P. Morgan (NYSE:JPM) could get crushed from the foolish idea, along with the consumers they serve, who will end up having to pay for the tax on the banks; assuming it really ever becomes policy.
Estimates at this time are it would cost Bank of America and JPMorgan Chase over $1.5 billion each if the tax is implemented, which would ultimately be passed on to consumers, raising the cost of doing business with the many banks in America, along with the overall cost of living.
All of this is an attempt by Obama and his administration to deflect the focus of the people from him and his clueless policies, and onto the banks which should have never been bailed out in the first place. This is being hailed as a way to give the taxpayers back their money, even though their money shouldn’t have been used this way at all.
Americans need to wake up to this type of theft, as they are being hoodwinked into thinking the banks will pay if they’re punished with this tax, when in fact if they’re going to operate profitably, the cost of doing business, including outrageous taxes like the ones being proposed, will end up being passed onto the consumer. The Obama administration is hoping the general populace won’t catch on or think of that, instead hoping they’ll applaud him for ‘punishing’ the banks that supposedly caused all the economic pain.
Showing his complete misunderstanding of economics and business, Obama stated this about the tax:
“We’re already hearing a hue and cry from Wall Street suggesting that this proposed fee is not only unwelcome, but unfair, that by some twisted logic, it is more appropriate for the American people to bear the costs of the bailout, rather than the industry that benefited from it, even though these executives are out there giving themselves huge bonuses.”
Again, the American people will not only bear the brunt of the bailout, but through this tax, will bear the brunt of paying it back once its passed on in a variety of ways through banking fees and other costs of doing business, which will be raised as a consequence of these actions.
Because this is so incredibly stupid, one has to assume this is a move by Obama and the Democrats to attempt to shore up their fading standing with the American people, who are angry and furious over the antics of the Obama administration and its almost total disregard for what the average American wants across a number of issues.
Once they find out that this will cost them even more for years into the future, is should largely backfire on them, and cause even more problems; as long as the American people understand that they’ll in fact have to pay for most of this through increased costs if it is implemented.
This has hints of desperation written all over it, and if Obama and his administration haven’t learned yet the American people are tired of them trying to centrally and in a socialistic manner, run the country, they’re going to find out in less than a year at election time.
