About the Initiative
Bank Tax Proposals
The tax reform plan released by the Chairman of the House Ways and Means Committee, Representative Dave Camp (R-MI), included a new excise tax on some systemically important financial institutions (SIFIs). Under the Camp plan, bank and non-bank companies designated as SIFIs under the Dodd-Frank Act would be subject to a quarterly excise tax equivalent to 0.035 percent of their total consolidated assets in excess of $500 billion. The excise tax, which would take effect in January 2015, would produce estimated revenues of $86.4 billion over a ten year period.
In this day and age, when two legislators of starkly opposed ideologies are both concerned with a particular issue around the same time, take note. Recently, this has been the case with consequences of the new Volcker Rule. One of the goals of the Dodd-Frank Act was to reduce the likelihood that a bank would get caught in a fire-sale environment holding speculative assets. The focus of the Volcker Rule was to prevent banks from engaging in speculative trading, whether by taking proprietary trades or by owning interests in risky endeavors doing the same thing.