Do Wall Street money-lenders and bankers get paid too much?
Probably.
I say this because banks are not doing very well in lending money--stating that they aren't financially healthy enough--but have enough money to pay out big bonuses.However, there are many, many problems with President Obama's proposed bank tax, which he calls euphemistically a "fee".
First of all is that this tax is patently illegal and unconstitutional. The Executive Branch--the President--cannot propose taxes. Says so right in the Constitution--http://www.usconstitution.net/const.html#A1Sec8.
Second of all, it's precisely the federal government that has propped up and allowed these banks to be in the position to pay these bonuses. If the government hadn't decided that these banks HAD to have money to stay open, the banks would have suffered the consequences of their bad decisions and would have closed (so what? that's the free market system--you goof up, you close up shop) or would have not been in a position to pay these bonuses.
Thirdly, these banks have, for the most part, paid back their loans with interest!! Why, then, are they being punished?
Even more unfair is that banks that did not borrow a dime from the federal government are being taxed. Why?
And who loses in the long run?
We the people. If these bankers get paid the big bucks--it's not hurting you. In fact, these bankers will pay big taxes on their big bucks. Which helps buoy up tax revenues.
But now we will feel the effects of this tax. Of course, these "fees" will trickle down to us, the people.
And these taxes will further dampen the economy by reducing the already-small-amounts of money that are available to loan.
Oh, and by the way--who gets exempt from these "fees"? Curiously, it's Fannie Mae and Freddy Mac, whose CEO's will get up to six million dollars in bonuses the next 2 years. My, that's does seem a lot of money not being taxed!
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