Obama mulls tax on banks to raise $120 billion
13 Jan 2010
US president Barack Obama is planning to raise about $120 billion over 10 years by imposing a fee on banks to help recoup losses from the Troubled Asset Relief Programme (TARP) and reduce the federal deficit, media reports quoted administration officials as saying.
The White House has not chalked out a final fee structure. The announcement is expected on Thursday, MSNBC reported today.
The official said most people expect to lose $120 billion from the government's $700 billion TARP that bailed out banks, automakers and other financial firms.
"The President has made a commitment to the American people that he will recoup their investment in the financial industry," a senior Obama administration official reiterated.
"While we have made great progress in recouping a large portion of the investment, consistent with the law, the president will propose a way to recoup additional funds and one of the options is a levy on financial institutions," the official added.
Earlier, White House spokesman Robert Gibbs said Obama was committed to ensuring tax payers get repaid for the billions of dollars of support given to finance firms.