America's independent, non-partisan advocate for overburdened taxpayers.

Vote Alert

NTU urges Senators to oppose S. 3637, the TAG Program Extension.

December 11, 2012

NTU urges Senators to oppose S. 3637, a bill to temporarily extend the Transaction Account Guarantee (TAG) program. Voting to continue this unnecessary program would perpetuate the failed bailout-prone policies of the past and force taxpayers to insure approximately $1.6 trillion of private savings.

Created in 2008 during the financial crisis, and extended under the Dodd-Frank banking law, TAG provides unlimited government deposit insurance above and beyond the standard FDIC cap of $250,000 for funds in accounts that do not earn interest. The program encourages individuals and corporations to store excess savings in interest-free bank accounts, rather than investing in vehicles that provide the market with essential capital to grow and innovate.

Extending TAG would continue to give wealthier individuals and businesses a taxpayer-backed insurance plan that distorts markets by hiding risk and removing essential competition in the banking industry. Rather than compelling taxpayers to underwrite this scheme and exposing them to potential liabilities, Congress should pursue legislation that will roll back costly regulatory burdens on our nation’s banks.

All roll call votes on S. 3637 will be included in our annual Rating of Congress. A “No” vote is considered the pro-taxpayer position.

If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700