Sunday, March 1, 2009

Excise tax on TARP Banks’ employees’ paychecks!

Excise tax on TARP Banks’ employees’ paychecks!

These managers and employees created the mess we are in;
No one forced them to buy any toxic assets;
Non one forced them to hold them;
No one forced them to increase and add more thru borrowing called leverage;
No one raised their hand upon getting a bonus check and said “it’s too much” when it’s clear to all NOW that it was;
No US taxpayer begrudged a TARP bank employee huge bonus checks!

They get a paycheck;
They get to keep their jobs;
They get to avoid “unemployment” and all the negatives associated.

The Taxpayer;
Gets one thing – the BILL!

SPECIAL EXCISE TAX on these TARP banks employees better aligns their interests TO the taxpayer.

Tax 10% of each TARP Bank employees’ paycheck deposited and held in a special escrow account;
Disbursed to US Treasury / Taxpayer upon earlier of:
TARP banks loan repayment in full with interest to US Treasury and /or;
TARP banks stocks increases / sold by US Treasury to repay taxpayer loans.
Or 2 years

Example – if at end of 2 years TARP loans have outstanding balance:
That TARP banks employees’ amounts in escrow account are released disbursed back to US treasury.

This places the TARP banks’ employees interests better in line with the position of their employers and more importantly the US Taxpayer – who is fronting, shouldering all the risk in this deal.

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