Friday, April 16, 2010

US Senate Could Resurrect Obama's $90 Billion Bank Tax

US Senate Could Resurrect Obama's $90 Billion Bank Tax; Dow Jones News Wire

Senate Democrats are considering moving forward with a tax on the largest U.S. banks, resurrecting an idea proposed by President Barack Obama in February as part of a White House move to more aggressively take on Wall Street.

When the plan was initially floated by the president, it received a muted response on Capitol Hill, and Thursday's development is the first indication lawmakers could move forward with the tax proposal.

The revenue raised by the tax could be used to pay for any number of forthcoming spending items, aides said, including possibly offsetting the costs of a package of temporary tax credits aimed at businesses and individuals.

As proposed by the White House, the bank tax, or financial crisis responsibility fee, would raise roughly $90 billion over a 10-year period.

The tax credit extensions would cost $31 billion for the remainder of 2010. Budget savings that senate lawmakers had previously intended to use to pay for the tax credits were instead diverted to partially cover the cost of Democrats' ambitious health care plan.

The tax break extension bill contains dozens of measures, including a popular research and development credit for businesses, as well as credits targeted at alternative energy sources, and a measure allowing individuals to deduct state sales tax. Those tax breaks lapsed at the end of 2009.

They were rolled into a larger $150 billion bill passed earlier this year by the Senate that included an extension of federal jobless benefits and health insurance subsidies for unemployed people through the rest of 2010.

Read the rest here.

1 comment:

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