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Hensarling: Obama’s ‘Trickle Down’ Taxes Will Hurt Consumers

Washington, Jan 20 -

Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement in response to President Obama’s plan for higher taxes, including a new tax on lending:

“Hardworking taxpayers deserve a path forward to financial independence, one that gives them more control over their finances.  Unfortunately, if President Obama has his way, hundreds of billions of dollars in new taxes will undeniably trickle down on to consumers.  They’ll face fewer choices, higher costs and less economic freedom.  No amount of White House spin can hide the fact that President Obama’s plan is nothing more than a tax on mortgage loans, car loans and small business loans.  Consumers will find it harder and more expensive to buy cars, homes, major appliances, save for college or start a small business. 

“Americans don't want two sets of rules -- one for the wealthy who'll never need a loan from a bank to buy a car, a new refrigerator or a home, and one for everyone else.  But Obama's plan to put a tax on consumer loans will do exactly that.

“Raising taxes just gives Washington bureaucrats more control to inefficiently spend money without accountability.  Instead, we need to hold Wall Street and Washington accountable.  Dodd-Frank lets Washington designate an entire category of Wall Street firms as ‘Too Big to Fail’ and then creates a taxpayer-financed bailout fund for their use.  Let’s start by ending ‘Too Big to Fail’ and Washington bailouts.  Let’s make sure the bankruptcy code is ready to resolve a large financial institution that gets into trouble so that its shareholders and creditors suffer the consequences of its failure – not U.S. taxpayers.  Instead of hurting consumers, let’s implement prudent and sensible capital and liquidity standards on big banks so our economy is no longer exposed to the risk of systemic failure.

“If the president is really concerned there is too much risk in the financial system, then clearly Dodd-Frank isn’t working as he intended and is thus yet another administration failure.  Its 400 regulations are stifling the Main Street economy.   So let’s cooperate on reforms that will work to make our financial system more stable without hurting those on Main Street who had absolutely nothing to do with causing the financial crisis.”