The definition of insanity is to do the same thing over and over again, expecting different results. Here is a good example of insanity: The Washington Post reports a “proposed tax on large banks, which President Obama plans to announce on Thursday, is intended to constrain risk-taking and discourage outsize bonuses, in addition to recouping some of the cost of the government’s various bailout programs, officials said.” The officials said the administration “wants to collect about $120 billion from banks over 10 years, taxing banks based on the amounts they have borrowed to finance lending and other activities.” The administration “plans to include the proposed tax in the budget it delivers to Congress in February,” but what “emerges from Congress, however, could be markedly different.”

Indeed. The Hill reports that House Financial Services Chairman Barney Frank “is mounting a new effort to limit executive compensation as Wall Street prepares this month to pay out huge bonuses.” Frank, “said he is looking at levying new taxes or fees on financial firms as well as ways to further empower shareholders to restrict pay.” Frank, “called a hearing for Jan. 22 and said he is not convinced by arguments that restrictions would hurt the industry by forcing well-paid employees to go elsewhere.”

Seriously, what are they thinking about? Can’t the administration and Frank see that these types of measures will only hurt the recovery? The only effect of this tax will be to soak equity out these institutions limiting their ability to recover and issue loans. Plus haven’t most of these banks repaid the money they were forced to take from the government? With interest, no less.

And if Mister Frank really believes that chasing well-paid employees to go elsewhere is a winning strategy and won’t have any impact on the industry, then I suggest that next time he is sick he goes to a hospital where doctors are poorly paid and see how he feels about that.

This anti-capitalist and anti-wealth mentality is scary and very anti-American.