Politicians like to create villains before raising taxes or using today’s nomenclature raising fees. Politicians do not raise taxes, they charge fees. Groups like the evil health insurance companies, big pharma, Wall Street, big oil, and big defense have all been in the sights of liberals/politicians/progressives.
The latest shot from the White House is at “big banks” as they are reportedly mulling the imposition of a fee on banks. The story from Reuters claims that Obama wants the fee to help the taxpayer recover costs from bailing out banks. My guess is that the White House used a focus group to test this position and must have gotten good feedback so they float a story that they are “mulling” this fee. Why is it that the main stream media cannot ask for details? How can any reporter with reasonable intelligence not ask the obvious follow up questions? I thought their role was to dig deeper and gather information.
The story further reports that “such a fee, which would likely be highly popular with taxpayers still angry at bankers who are preparing to reap huge bonuses, could be part of next month’s budget.” The Democrats have checked the weather (focus group), and have now stuck their toes in the water and are waiting to see the push-back. Obama is counting on anger from taxpayers to cloud their judgement.
Obama is also counting on big banking to keep quiet. My guess is that they are “in the know” and understand their role in this process as the demon. They know that these fees will be passed on to the consumer and the banks will not punished as the story is portrayed.
They expect this to be popular and successful since they know that most of their constituency does not understand basic economics. Any “fees” charged to banks will be passed through to their customers via transaction fee increases or some other less obvious method. The good news is that this bank fee, however, will only be passed on to Americans who use banks which is probably only 99 percent of the population over the age of two.
This fee and any such government fee is a tax applied in an underhanded way. If it acts like a tax, looks like a tax and smells like a tax, it is a tax.
This one smells.