Littmann: Bank Tax a Disincentive

David L. Littmann, the Center's senior economist, said a proposed new tax on banks could hamper their growth and reduce their willingness to loan money.

The tax of 0.15 percent on bank liabilities would be levied against banks with more than $50 billion in consolidated assets, according to an editorial in The Detroit News. Littmann told The News that banks just under that cap might be motivated to stay under the limit, which in turn means less money to loan.

Stay Engaged

Receive our weekly emails!

Littmann warned in this November 2009 Viewpoint that a government bailout of Wall Street was not appropriate.