Wednesday, March 5, 2014
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Ways and Means Panel Members Call Bank Tax ‘Bad Idea’
The $61 billion bank tax in the administration’s fiscal year 2013 budget proposal is a “bad idea,” House Ways and Means Committee members Aaron Schock (R-Ill.) and Erik Paulsen (R-Minn.) said yesterday in a “Dear Colleague” letter.
“This is a bad idea for several reasons, least of which is that it’s a mistake to raise taxes as our economy struggles to rebound,” they said. “It is important to remember that $1 of bank capital can support up to $10 in lending, which means that a 10-year tax of $61 billion would result in up to $600 billion in loans that would not be made over that 10-year period.”
Schock and Paulsen also attached a Washington Post editorial to the letter that points out that the Treasury Department has turned a $13 billion profit on the bank portion of the Troubled Asset Relief Program. ABA has made similar points in explaining its strong opposition to the bank tax.
Read the letter.
Ways and Means Panel Members Call Bank Tax ‘Bad Idea’
“This is a bad idea for several reasons, least of which is that it’s a mistake to raise taxes as our economy struggles to rebound,” they said. “It is important to remember that $1 of bank capital can support up to $10 in lending, which means that a 10-year tax of $61 billion would result in up to $600 billion in loans that would not be made over that 10-year period.”
Schock and Paulsen also attached a Washington Post editorial to the letter that points out that the Treasury Department has turned a $13 billion profit on the bank portion of the Troubled Asset Relief Program. ABA has made similar points in explaining its strong opposition to the bank tax.
Read the letter.