The government will charge a responsivility tax to the big banks
17 Jan
The government of Barack Obama is planning to put a 10 years tax on nearly 50 big financial entities. This doesn’t mean that the government will win money with it, because the program of toxic assets purchases generated money to the public treasury.
These taxes will be of about $90.000, will cover loses from the car and insurance industries, and the aid plan to the real state market. It is true that banks got benefit from the actuations of the government to handle the financial crisis, and some must pay for it. It’s probable that Although Obama said no way, the customers of the banks will end being the payers.
The ”responsibility tax” will generate a big debate and will possibly be modified before being promulgated. But under its current form, that affects the capitals except the Tier1 and domestic deposits, the fiscal structure is unfavorable for brokers, due to its big dependence to wholesaler financing and entities like Citygroup, that have a wide basis of non assured deposits abroad.
With this new tax, the government will charge the entities by 0.15% of total assets less the higher quality assets. In this calculation, won’t be added a
ssets that are already covered by the Warranty Fund.
Reaction to the new tax of the government
Morgan Stanley estimates the yearly impact of the government’s new tax in between 2% and 7% from yearly profits, before provisions, from the big American Banks on the thir
d quarter. This sum seems affordable but the longevity of the Tax and the absence of previous situations like this, is disturbing. The delegate councilor of JP Morgan Chase, Jamie Dimon, states that the United States could suffer a new crisis during the 10 years of this tax.
Government penalizations like this could affect the credit spread. If the tax is calculated on a continued basis, the incentives to reduce budgets, and compete with more energy for American Deposits,increases.
Some European entities will be affected by this new tax, and some European Governments reacted to it. Angela Merkel, the German Cancillerin, showed on Thursday his preference for a tax on financial transactions (Tobin tax), while the United Kingdom pointed that the probl
ems of the United Stated are an issue for its government not for the others.
France pointed that a taxes on bonuses paid to bankers is the most efficient answer. In Spain, the party ”Izquierda Unida” encouraged the government a sp
ecial tax to Banks in order to finance ‘active initiatives for the job generation.
Related posts:
- The United Kingdom, Germany and France will charge a new tax to the banks
- The big European Banks are having profits again
- A new tax for the banks; The United Kingdom will try to cut deficit dramatically
- The International Monetary Fund wants more transparency in solvency tests made to banks
- Barack Obama suggested reforms to the financial system
Pity that this article is not in real english. Dont know who “web tycoon is” but as a commentary on a major policy decision,it is somewhat lacking in substance.
President has made a brave attack on the libertarian US policy makers of the past. Whether it wil “gell” remains to be seen, but something has to give or we will be watching the same scenario in 10 years
If You Don’t know the web tycoon, you should see the about page: http://the-web-tycoon.com/blog/about
With this new Tax, banks will want to buy safer assets to have an higher amount to substract from the risky ones and owe less taxes. So comes into my mind these clickbank books and radio advertisers who promise you to improve your credit score. In other words, there is a new business, a product with a name like ”improve the quality of your assets” and a testimonial saying: “We were receiving a lot of collection calls from the revenue service, now we are getting enough money from taxpayers to prepare another financial crisis”.
Interesante, yo cotizaciуn en mi sitio mбs tarde.
Gracias
Socco
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