Obama’s Bank Tax Draws Fire

Senator Judd Gregg, (R-NH) who is working with Senator Jack Reed (D-RI) on regulation of derivatives and credit rating agencies, criticized President Obama’s proposals to tax and curb Wall Street’s activities, calling the bank tax a political response to losing the Massachusetts Senate seat.

“I think it’s confused the issue considerably, because he’s basically fanned the fires of populism and in a lot of instances, populism doesn’t give you either good regulatory activity or strong markets,” Mr. Gregg said. “It undermines both, in many instances.”

But industry representatives and Democratic Congressional aides have countered, saying that the president’s new proposals have dialed up the energy and volume of the lobbying on regulatory reform, a sure sign that things are moving along.  One thing is for sure: vengeance makes bad tax policy.