Free Markets, Free People
Naive? Dumb? Or Just Doesn’t Understand How Taxes Work?
Jake Tapper, today, asking Presidential spokesperson Robert Gibbs about the bank tax:
TAPPER: On the fee for banks, without asking for any details, how can you guarantee that this, that this fee, tax, levy, whatever it ends up being, is not passed on to consumers and they take another hit when it comes to Wall Street?
GIBBS: Yeah, well, look, obviously, Jake we’ll have a chance to go through the structure of this. The economic team has worked for quite some time on a structure that will ensure that what taxpayers gave to banks to ensure their safety and security, in a time of crisis, is paid back in full. And I can assure you that is one of the things the economic team has taken into account in the structure.
Unless the “structure” plans to ensure bank fees aren’t raised in any other area to capture the money this “fee, tax, levy, whatever” from the banks, then of course banks are going to pass it on. If the “structure” is going to prevent such a raise in fees anywhere within the bank, then this isn’t a new tax, it’s a government takeover of the banks.