PM Harper at the G20 in June 2010 says that Canada's banks should not be bothered with a bank tax. He reasons that Canadian financial institutions have not been burdoned by the leverage problems of other nations. For example Canadian banks do not sell their debt to other institutions like other nations banks do and when the financial crisis of the 2007 2009 hit financial players like Lehman and others the Canadian financial institutions remained a safe haven for investment both internally and globally.
Meanwhile other nations such as the US saw themselves in a web where they needed to protect their financial institutions by initiating stimulus packages. Billions of dollars were allocated by governments and by the people who are in the end the government; the taxpayer. President Obama is now stating that there is a means of recovering some of the taxpayers investment and one method is by taxing the banking industry.
The implications of a bank tax is to return some of the bailout package burden back to its rightful owner which is in the end the tax payer.
This was an issue at the G20 summit in Toronto in June 2010. Harper put forth his proposal that such a bank tax is not reasonable or justifiable globally but other nations counteracted the Canadian Prime Ministers concerns.
To US President Obama coordinating global financial reform and avoiding further global financial chaos meant forwarding the concept of such a bank tax on any nation that sees itself throwing countless new fiat dollars towards securing a global financial system that may or may not be damaged beyond repair.
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