This article is about President Obama proposing a new tax that would tax the companies responsible for the nation’s economic crisis. The tax would estimate to bring in $90 billion dollars over the next decade. Obama believes that firms are now financially healthy enough to reimburse the government for their economic rescue efforts.
Sunday, February 7, 2010
Obama plan to tax large financial firms designed to pay for TARP losses
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It makes sense to tax the financially healthy firms. However, these taxes will increase the firms' costs of production and they will experience a decrease in profits. This can serve as an excuse and prevent them from hiring new workers. Hence this move might not improve the umemployment situation.
ReplyDeleteThis is very interesting to see the Government thinking of taxing the companies that got us into this mess. I believe it is smart to tax them due to them being so irresponsible however I think they should be taxed when their company is doing their best so their profits won't be decreased so heavily. I agree with Iqbal, I hope this does not prevent these companies from hiring workers.
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