Three Cheers for Canada

Sleazy politicians from France, Germany, England, and the United States want a bank taxes that would finance national piggy banks to bail out politically favored companies and industries. But they are not stupid, so they realize that nations that impose bank taxes will lose deposits to nations with more sensible policy. This is why the statists want to convince all nations to adopt the same policy. Fortunately, some nations are resisting harmonized bank taxes, and Canada is taking the lead. Canadian leaders rightfully explain that their banks never got in trouble, largely because Canada does not have foolish housing subsidies. Let us hope that Canada, as well as other nations such as Brazil and Australia, block the corrupt policies being pushed by statists such as Obama and Merkel.

Canada will "resist" a bank tax, Industry Minister Tony Clement said Tuesday as ministers fanned out across the world to raise opposition to the proposal for avoiding another financial crisis. "Canada is, and will remain, opposed to a tax that would penalize financial institutions that remained strong and prosperous while many of the world's banks failed," Clement told a press conference with Foreign Minister Lawrence Cannon. ...Attempts to reach international agreement on coordinated bank taxes at last month's G20 and IMF meetings ran aground. Nations including Canada and Brazil, whose banking sectors emerged largely unscathed from the financial crisis, objected to the plan, favoring higher capital reserve requirements instead. But it is expected to be revived at the next meeting of G20 leaders in Toronto next month, with Germany's Angela Merkel vowing to press for the proposal supported by many in Europe. Clement said the bank tax would "encourage risky behavior" if it is used to create a bank bailout fund and "reward bad behavior" of those institutions responsible for the recent financial crisis in the first place. ..."This tax would reach into consumers' pockets and punish our financial institutions which have taken precautions to avoid the very turmoil that is afflicting other parts of the globe," Clement lamented.