Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and other big banks are marshaling opposition on Capitol Hill to kill a proposal by House Ways and Means Committee Chairman Dave Camp (R., Mich.) to tax the nation’s largest financial firms, according to people familiar with the efforts. The companies are curtailing financing for GOP lawmakers and warning of an economic hit, these people say.
Goldman Sachs, which was in discussions to hold a fundraiser for the National Republican Congressional Committee, recently opted not to move forward because of concerns about Mr. Camp’s bank-tax proposal, according to people familiar with the plans….
The bank tax would apply to financial firms with assets greater than $500 billion, levying 0.035% on total consolidated assets each quarter. Firms likely to feel the impact include American International Group Inc., Bank of America, Citigroup, General Electric Co.’s GE Capital unit, Goldman Sachs, J.P. Morgan, MetLife Inc., Morgan Stanley, Prudential Financial Inc. and Wells Fargo & Co. Some firms could pay in excess of $2 billion a year, according to analysts and industry groups….
The financial industry is a major contributor to Republican campaigns. In the third quarter of 2012, commercial banks and securities and investment firms donated $36.7 million to Republicans, or 79% of the industry’s total, according to the Center for Responsive Politics. They gave $9.8 million to Democrats.