Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: February 5, 2015
The Firm
201-896-4100 info@sh-law.comThe 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.
“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.
“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.

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena

For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall

Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!