In a National Review Online article, Kevin Williamson notes that a proposed federal banking tax seems purely inspired by vilification politics, but will none-the-less put American banks at a very real competitive disadvantage in the global market:
The new proposed tax on banks — 15 basis points on all liabilities — is not about revenue or responsibility: It’s about politics. President Obama is running away from Wall Street as fast as he can, but Wall Street has a funny way of catching up with him…
…The bank tax is not only a new and unneeded burden on our struggling financial sector, it’s also a long-term competitive disadvantage for American industry: Finance is a cutthroat world, and New York City is in a constant battle with London, Shanghai, and other financial centers for jobs and investment. If it inspires even a handful of firms to relocate, Obama’s new tax could end up costing the government money in the form of forgone revenue from personal-income taxes, corporate-income taxes, and capital-gains taxes. Wall Street’s loss will be the City of London’s gain. The real mystery is why Wall Street is still paying for the privilege of being scourged.
http://article.nationalreview.com/?q=NThhNDZkZmQxNjcxZDExYWRjNTJ kYmQ4YTFmNjFjNzU=
