Obama proposes new bank tax

After agreements were made in Congress for the new financial reform bill, Obama is now proposing a new bank tax. This will affect finanical companies with more than $50 billion and hedge funds with more than $10 billion. In his weekly address Obama said that this was to make sure than taxpayers got back every dime from the bailouts they handed out in 2008 and 2009. The tax is projected to generate roughly $90 billion in revenues over its 10 year life span.

Considering that TARP, which was the main bailout bill cost taxpayers $700 billion, I don’t see how $90 billion is going to get us “every dime” back. It seems to me there are a lot of dimes still out there. Moreover, most financial institutions have already paid back they’re TARP bailouts, with interest. Why tax them now for bailouts? Why not tax GM or Chrysler, the institutions that still are borrowing TARP funds?

Also, why is he targeting hedge funds if the purpose is to repay the taxpayers from bailouts? Name one hedge fund that got TARP money specifically? It doesn’t exist. This is typical misdirection by Obama.