In his State of the Union address Wednesday night, President Obama repeated his call for a tax on banks, calling it “a modest fee to pay back the taxpayers who rescued them in their time of need.” That sounds good, everyone agrees the taxpayer’s money should be paid back. But there’s a bit of misdirection going on here.
As shown in the chart above, most big banks have already paid back the government money they received, with interest. On the other hand, most of the big companies that still owe billions to taxpayers, including Fannie Mae and Freddie Mac, and auto firms GM and Chrysler would not be subject to the tax. Only two big firms, AIG and GMAC, owe the government and would pay the tax. Even in these cases, the “modest fee” won’t add anything to the government’s coffers — any taxes they pay would simply reduce the amount the amounts they pay back.
The plan will do nothing to help taxpayers or get bailout money returned to the Treasury. It makes for good rhetoric — what politician doesn’t want to sound anti-bank nowadays? — but is no substitute for real policy.
Teaser:
Republican 12th District Congressional candidate Scott Sipprelle announced today that he has contributed $250,000 of his own money to his campaign account and will match “at least” the first $1 million in donations he receives.
“I am not in this campaign simply to compete and put up a good fight, I am in it to win in November and send Rush Holt back to private life,” said Sipprelle, a venture capitalist and former hedge fund manager. “I believe so strongly in my core message of economic renewal and fiscal responsibility, and in my ability to carry that message to every corner of this district, that I am announcing today my plan to match at least the first $1,000,000 in donations received from supporters who agree with me that the time has come to make American work again.”
Sipprelle wants to run against U.S. Rep. Rush Holt (D-Princeton), but first has to get by Republican Fair Haven Mayor Michael Halfacre in the GOP primary. Halfacre has little money (he had raised only about $60,000 as of September 30), but started campaigning almost a year ago and has won a significant amount of establishment party support.
Sipprelle, a Princeton resident, kicked off his campaign Wednesday night at the Princeton Regency Hyatt.
Without specifically noting Halfacre's anemic fundraising, Sipprelle nevertheless drew attention to it.
“A message that cannot be heard is a message that will fail,” he said. “The stakes are too high to go mute on the critical issues affecting our communities and our nation. I look forward to holding Rush Holt accountable for his failures in Congress and forcing him to engage in a contest of ideas that he cannot and will not win.”
Republican 12th District Congressional candidate Scott Sipprelle announced today that he has contributed $250,000 of his own money to his campaign account and will match “at least” the first $1 million in donations he receives.
