By Silla Brush - 05/03/10 03:49 PM EDT
New York state lawmakers are telling Congress to oppose President Barack Obama's plan to tax banks for the financial bailout.
The lawmakers are telling Congress the president's plan, "would make New Yorkers pay for the sins of Detroit."
In a letter to Rep. Peter King (R-N.Y.), 10 members of the New York State Assembly are urging Congress against the proposal, saying the tax, "is loaded against New York because we are where the vast majority of affected financial institutions have their largest employment and profit centers."
The letter is signed by Darryl Towns, Jose Peralta, Michael Gianaris, Jonathan Bing, Vanessa Gibson, Adriano Espaillat, Adam Clayton Powell, Carl Heastie, Sam Hoyt and Marcos Crespo.
The tax is meant to recoup money from the $700 billion financial bailout package from 2008. When the White House originally proposed the tax in January, the administration said it would not apply to General Motors, Chrysler, Fannie Mae and Freddie Mac. The bailout is known officially as the Troubled Asset Relief Program (TARP).
"It is the car industry bailout where American taxpayers are likely to suffer the big losses from TARP, but the car companies are not among those being hit with the new tax," the lawmakers wrote.