Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Wall Street Reacts To Obama Tax Proposals

Author: Scarinci Hollenbeck, LLC

Date: February 5, 2015

Key Contacts

Back

Shortly after Pres. Barack Obama unveiled his latest tax proposal during the recent State of the Union Address, financial services industry participants, republican lawmakers and top lobbyist on Wall Street have all voiced their criticisms of the would-be policy.

The Securities Industry and Financial Markets Association contended that the new tax, which would place a seven-basis point levy on the liabilities of the largest banks, insurance firms and investment management companies in the U.S and Wall Street., is a superfluous attempt to manage industry risk and could undermine lending, according to Bloomberg.

Obama announced this new plan in his most recent SOTU address after floating a similar proposal last year, when he suggested imposing a tax on the liabilities of banks holding $50 billion in assets, the media outlet reported. The new plan, which would generate tax revenue that is estimated to be twice as high, would extend to asset managers and insurance firms and provide a lower tax rate than the original proposal.

SIFMA president and CEO Kenneth Bentsen weighed in on the policy in a statement released Jan. 18.

‘Unintended consequences’

“Tax rules are often blunt instruments, and the tax code is not the place for a broad, new and duplicative financial regulatory regime,” he said. “This $110 billion targeted tax increase on America’s most productive financial institutions could have far-reaching unintended consequences that will curtail economic growth and job creation while negatively impacting the allocation of credit and the provision of financial services to individuals and institutions.”‎ ‎

He was not the only industry representative who spoke out against the proposal, as James Ballentine, chief lobbyist at trade organization the American Bankers Association, emphasized the challenges the new tax could create for the financial services industry, according to The Financial Times.

‘Difficult time’

“This really comes at a difficult time for an industry that is moving the economy forward,” he said, the media outlet reported. “To impose a fee, a flat tax, is certainly not warranted, and I hope Congress will reject this idea.”

Bentson also asserted that the proposed change was coming at a bad time and that it appeared oblivious to all the changes that lawmakers and regulators have made since 2009, according to Bloomberg. While he emphasized that government officials have been working on changing the regulatory environment for years, democrats in congress have been playing tug of war with industry as its representatives make an effort to take the bite out of the Dodd-Frank Act.

These struggles could experience key shifts after the republicans managed to enjoy key victories in both the House and Senate. These conservative lawmakers are not likely to approve another tax hike, as they have argued that such efforts hold back economic growth, according to The Financial Times.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators post image

Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators

NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!