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Home Publications Blogs Beat the Press Senator Brown is Concerned About a Tax Equal to 0.01 Percent of GDP

Senator Brown is Concerned About a Tax Equal to 0.01 Percent of GDP

Sunday, 27 June 2010 18:22

Senator Scott Brown has indicated that he may reverse himself and vote against the final version of the financial reform bill. He claims to be upset about fees levied on financial institutions that will total $18 billion over the next decade.

It would have been helpful to put this number in some context so readers would have clearer idea of what is at stake. The fee is approximately equal to 0.01 percent of projected GDP over the next decade. If it is fully passed on by financial institutions to customers will cost people an average of $6 a year. 

Comments (4)Add Comment
written by urban legend, June 27, 2010 10:11
Isn't it unwise to say "if it is fully passed on" by the financial institutions -- suggesting that it is strictly a matter of voluntary action by the banks unless out of the goodness of their hearts they give their customers a break? If we had real competition, they would have a hard time passing it all through. Do we have that? Doubt it.
i gotta fee 4 ya
written by frankenduf, June 28, 2010 7:58
no joke- i withdrew $20 from an ATM and was charged a $5 fee!!!- where's the senator now?- where's my headline?- sigh- i guess only the little people pay usurous fees
written by izzatzo, June 28, 2010 10:07
Please, get a grip, anyone knows that even the mere anticipation of regulation causes highly competitive companies to increase prices and fully pass through the expected losses, like the health insurers did.

Look at it this way. Collecting a $5 fee for a $20 ATM withdrawal is actually $1 short of recovering the full pass through amount of $6 per person, so it's a discount with which anyone would be pleased. Senator Brown should be congratulated for understanding how such savings are created in a dynamic economy.

Stupid liberals.
written by Queen of Sheba, June 28, 2010 3:58
Pin-up Boy Brown voted against the amendment that would have forced the banks to build a $50 billion fund to help bail them out the next time their greed gets them in trouble and they come crying to the treasury department. He also came out foursquare against any tax applied to Wall Street transactions. Now he's so against relatively small fees being levied against financial institutions that he is threatening to filibuster the entire bill.

I guess the publicity involved in his introducing Elena Kagen to the Senate Judiciary committee on live teevee today wasn't enough - he craves more headlines.

I hope the people of Massachusetts are happy.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.