A Familiar Phrase

cash-wad 1

Eric Dash in the New York Times recounts that “Political analysts expect the bank tax to pass easily in the House but”—wait for it—”face resistance in the Senate.”

The reality is that this proposal, while perfectly sound, is also incredibly modest. The tax is neither hefty enough to compensate for the implicit “too big to fail” subsidy nor is it enduring enough to cut the long-term deficit. I’d be interested to know which Senators think the long-term deficit shouldn’t be lower and which ones think that public policy doesn’t do enough to help very large financial institutions.