sshhoouulldd wwee iimmppoossee eevveenn hhiigghheerr...

2
10/26/12 Milken Institute | Newsroom | Currency of Ideas - Should we impose even higher taxes on U.S. banks? 1/2 www.milkeninstitute.org/newsroom/newsroom.taf?function=currencyOfIdeas&blogID=588 Posted by James R. Barth James R. Barth and Nan (Annie) Zhang Enter keyw ord(s) to search October 26, 2012 at 03:04 PM Should we impose even higher taxes on U.S. banks? Should we impose even higher taxes on U.S. banks? Banking Public Policy President Obama's Fiscal Year 2013 Budget proposes to impose an additional fee (tax) on U.S.-based bank holding companies, thrift holding companies, certain broker-dealers, as well as companies that control insured depositories, with assets in excess of $50 billion. But is this a good idea? The U.S. corporate tax rate on domestic bank income already is the fifth highest rate among 113 countries around the world, as the table below shows. The U.S. rate at 38 percent is 14 percentage points higher than the average rate (24 percent) for all the countries. It is also more than twice the tax rate that Germany levies on its banks. Today, many banks, especially big banks, provide banking services globally and not just in their home countries. Imposing such a high tax rate on U.S. banks only serves to weaken their ability to compete with banks that are taxed at lower rates in other countries. Do we really wish to put our banks at a competitive disadvantage to banks in other countries? We think to do so is a bad idea. Members of the press may direct inquiries to: Conrad Kiechel Director of Communications Phone: (310) 570-4668 Fax: (310) 570-4627 [email protected] [email protected] Skip Rimer Executive Director of Programs and Communications Phone: (310) 570-4654 Cell phone: (310) 739-7591 Fax: (310) 570-4627 [email protected] [email protected] Should we impose even higher taxes on U.S. banks? October 26, 2012 at 03:04 PM Posted by James R. Barth James R. Barth and Nan (Annie) Zhang A look at the tax rates nations impose on their banks and how the U.S. compares. Read more... Read more... Should big banks be broken up? A debate October 25, 2012 at 03:02 PM Posted by Daniel Gorfine Daniel Gorfine, Julianne Brands A discussion of issues surrounding Too Big To Fail banks: Are they good for the U.S. economy, or do they pose too great a risk? What's their role on the world stage? Read more... Read more... Good and bad news as big banks race to meet more stringent capital requirements October 24, 2012 at 12:59 PM Posted by James R. Barth James R. Barth, Daniel Gorfine Daniel Gorfine, Tong (Cindy) Li Tong (Cindy) Li Basel III may make for healthier banks, but what about economies overall? Read more... Read more... RT PCFnews The promise of bioscience is the potential for a lifetime #2012retreat #ProstateCancer @MilkenInstitute 3 hours ago Retw eeted by MilkenInstitute and 1 other

Upload: others

Post on 19-Nov-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: SShhoouulldd wwee iimmppoossee eevveenn hhiigghheerr …webhome.auburn.edu/~barthjr/publications/2012/Check... · 2012. 10. 26. · YYoouuTTuubbee GGooooggllee++ AApppp SSttoorree

10/26/12 Milken Institute | Newsroom | Currency of Ideas - Should we impose even higher taxes on U.S. banks?

1/2www.milkeninstitute.org/newsroom/newsroom.taf?function=currencyOfIdeas&blogID=588

Posted by

James R. BarthJames R. Barth

and

Nan (Annie)

Zhang

Enter keyw ord(s) to search

October 26, 2012 at 03:04 PM

Should we impose even higher taxes on U.S. banks? Should we impose even higher taxes on U.S. banks? Banking Public Policy

President Obama's Fiscal Year 2013 Budget proposes to impose an additional

fee (tax) on U.S.-based bank holding companies, thrift holding companies,

certain broker-dealers, as well as companies that control insured depositories,

with assets in excess of $50 billion.

But is this a good idea? The U.S. corporate tax rate on domestic bank income

already is the fifth highest rate among 113 countries around the world, as the

table below shows. The U.S. rate at 38 percent is 14 percentage points higher

than the average rate (24 percent) for all the countries. It is also more than

twice the tax rate that Germany levies on its banks. Today, many banks,

especially big banks, provide banking services globally and not just in their home countries.

Imposing such a high tax rate on U.S. banks only serves to weaken their ability to compete

with banks that are taxed at lower rates in other countries. Do we really wish to put our banks

at a competitive disadvantage to banks in other countries? We think to do so is a bad idea.

Members of the press

may direct inquiries to:

Conrad Kiechel

Director of Communications

Phone: (310) 570-4668

Fax: (310) 570-4627

[email protected]@milkeninstitute.org

Skip Rimer

Executive Director of Programs and

Communications

Phone: (310) 570-4654

Cell phone: (310) 739-7591

Fax: (310) 570-4627

[email protected]@milkeninstitute.org

Should we impose even higher

taxes on U.S. banks?

October 26, 2012 at 03:04 PM

Posted by James R. BarthJames R. Barth and

Nan (Annie) Zhang

A look at the tax rates nations impose

on their banks and how the U.S.

compares.

Read more...Read more...

Should big banks be broken up?

A debate

October 25, 2012 at 03:02 PM

Posted by Daniel GorfineDaniel Gorfine, Julianne Brands

A discussion of issues surrounding

Too Big To Fail banks: Are they good for

the U.S. economy, or do they pose too

great a risk? What's their role on the

world stage?

Read more...Read more...

Good and bad news as big banks

race to meet more stringent

capital requirements

October 24, 2012 at 12:59 PM

Posted by James R. BarthJames R. Barth, Daniel GorfineDaniel Gorfine,

Tong (Cindy) LiTong (Cindy) Li

Basel III may make for healthier banks,

but what about economies overall?

Read more...Read more...

RT PCFnews The promise of bioscience

is the potential for a lifetime #2012retreat

#ProstateCancer @MilkenInstitute

3 hours ago

Retw eeted by MilkenInstitute and 1 other

Page 2: SShhoouulldd wwee iimmppoossee eevveenn hhiigghheerr …webhome.auburn.edu/~barthjr/publications/2012/Check... · 2012. 10. 26. · YYoouuTTuubbee GGooooggllee++ AApppp SSttoorree

10/26/12 Milken Institute | Newsroom | Currency of Ideas - Should we impose even higher taxes on U.S. banks?

2/2www.milkeninstitute.org/newsroom/newsroom.taf?function=currencyOfIdeas&blogID=588

Please help protect our site from spammers, type the following number

into the field below.

9 8 6 2 0

Submit

TweetTweet

Your Comment:

Name:

Tilte/Organization:

Location:

Email:

Comment:

RT PIERAKLEIN You're Invited! Milken

Institute Forum moderated by Angella

Nazarian, featuring Jill Iscol, Susan De

Anda... - http://t.co/oG27G7O6

4 hours ago

Retw eeted by MilkenInstitute and 1 other

Hearts on Fire: Twelve Stories of Today's

Visionaries Igniting Idealism into Action a

forum at our Santa Monica office!

http://t.co/jLhv1cep

4 hours ago

About UsAbout Us CareersCareers ContactContact Download Annual ReportDownload Annual Report FAQsFAQs LocationsLocations Our Team (Staff and Fellows)Our Team (Staff and Fellows)

BlogBlog

EventsEvents AssociatesAssociates ConferencesConferences Global ConferenceGlobal Conference State of the StateState of the State SummitsSummits LondonLondon CaliforniaCalifornia ForumsForums LabsLabs Young LeadersYoung Leaders

ExpertsExperts

NewsroomNewsroom Latest NewsLatest News News VideosNews Videos Press ReleasesPress Releases

ResearchResearch CentersCenters Accelerating Energy SolutionsAccelerating Energy Solutions AsiaAsia CaliforniaCalifornia FasterCuresFasterCures Financial MarketsFinancial Markets Israel CenterIsrael Center

InitiativesInitiatives

PublicationsPublications BooksBooks Financial Innovations LabsFinancial Innovations Labs Milken Institute ReviewMilken Institute Review Research ReportsResearch Reports ViewpointsViewpoints Search All PublicationsSearch All Publications

Support MISupport MI AssociatesAssociates DonateDonate SponsorshipsSponsorships Strategic PartnersStrategic Partners

Follow UsFollow Us @Twitter@Twitter FacebookFacebook YouTubeYouTube Google+Google+

App StoreApp Store

Privacy StatementPrivacy Statement

Related SitesRelated Sites Celebration of ScienceCelebration of Science Chairman's CornerChairman's Corner Melanoma Research AllianceMelanoma Research Alliance FasterCuresFasterCures Partnering Partnering For CuresFor Cures

©2012 Milken Institute©2012 Milken Institute