Financial Accuracy

With some very direct words, “We want our money back, and we’re going to get it.”, our president showed the nation yet another tax.  This new purposed tax not only would not make any friends with our nation’s banks, but also would take a large dent out of their upcoming profits.  The top six banks would be paying almost a billion dollars a piece in the upcoming years and the largest two (Citigroup and J.P. Morgan) would be loosing around 2.5 billion annually.

With the new changes that are being put in place for the bank tax one must think about what the future holds.  With an increase of taxes, a huge portion of our banks profits or bottom line diminishes.  With more money taken from the banks the less likely they are going to be giving loans out to our population and for the lucky few who manage to qualify they will be paying higher interest rates than ever before.  With less loans the economy stays in its current position, because people will still be hesitant to spend their money, which therefore decreases salaries, sales, and other positive things to boost our nation’s wealth.

The tax has not been finalized yet, but has been in discussion since last August, meaning that the bill probably is not going way any time soon.