Tuesday, January 12, 2010

A quick roundup of Obama's proposed bank/banker tax

at the New York Times.

In addition to the risks and concerns mentioned, I would add the deadweight costs of lost jobs in the financial sector. That's right, this will add to higher unemployment.

UPDATE: Crosstown rival Wall Street Journals reports:
Give Ben Bernanke a big bonus. The Federal Reserve Chief certainly seems to deserve one–having helped taxpayers reap a $45 billion profit on investments in the beleaguered financial system–the more profitable year in the Fed’s 96-year history. ... While the estimated Fed’s windfall is no doubt welcome, it could complicate the Obama administration’s plan to tax banks to recoup the costs of the bail out. Indeed, as has been pointed out this morning by numerous commentators and analysts, the government bail out appears to have made money for taxpayers in most instances. So, where is the justification for the tax?

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