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.

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan

Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan

Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan

Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan

Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer

For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
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!