President Obama has a plan to tax big banks in an effort to recoup the hundreds of billions that financial groups received during the tax payer funded bailout. Prior to Thursday’s unveiling of the proposal, US Senator Russ Feingold said he wants to make sure smaller, community banks will not be affected.

The Wisconsin Democrat says large financial institutions who took TARP money, “still owe us quite a bit,” and called the tax a “fair” way to bring down the US deficit.

Washington’s recent attempts to reel in credit card companies often resulted in the consumers suffering with extra fees and restrictions. Feingold concedes it’s possible these taxed banks will also buckle down on their customers, but he poses “more regulation” may be required to ensure this doesn’t happen.

Obama’s proposal will be part of his budget submitted to Congress in February. If approved by lawmakers, the tax would force about 50 banks, insurance companies and large brokers to collectively pay about $90 billion over 10 years.

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