Financial reform bill "would impose a $19 billion tax on financial institutions"

[ProSense]

Bank taxes in vogue around the globe

By Ben Rooney, staff reporter

NEW YORK (CNNMoney.com) -- As world leaders gather in Canada to discuss ways to strengthen the global economy, lawmakers in the United States finalized a bill Friday that would impose a $19 billion tax on financial institutions.

The tax, which is part of a sweeping overhaul of the U.S. financial system, comes after policymakers in the United Kingdom, France and Germany moved ahead with plans to impose new bank taxes this week.

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In the United States, the proposed $19 billion tax would cover the cost of implementing financial reform. President Obama is expected to sign the bill in July.

The tax would apply to banks with more than $50 billion of assets and hedge funds with over $10 billion in assets. It would be assessed based on how much risk an institution takes and is expected to raise $4 billion a year over the next five years.

In addition, Congress is considering a $90 billion "financial crisis responsibility fee" as part of President Obama's 2011 budget proposal. The so-called bailout tax would be paid largely by major financial institutions that contributed to the financial crisis, and were the biggest beneficiaries of extraordinary government actions.

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Interesting.

[napi21]

1. I think this is a great idea. If it's baed on the amount of risk the

istition taks, i shud also sreve as a deterent to HIGH RISK activity.

[moparlunatic]

2. I'm all for financial reform

but I'll bet they just pass the cost on to us.

[Fire1]

4. Uh.....they are going to do that anyway. They're going to do

anything to increase their profit margine with or without an increase in taxes. Welcome to the world of capitalism. Don't like it? Move to a socialist country.

[flpoljunkie]

3. Republican Scott Brown says this may cause him to vote no on the conference report.

All that kowtowing and weaking for perhaps nothing.