Tuesday, July 14, 2009

Tax them to death, yes or no?

Call for a 90% tax on banker bonuses

Bankers should pay 90 per cent tax on massive bonuses, a group of MPs said yesterday. The call came at a timely moment as it appeared that City banks are again distributing huge pay and perks. Wall Street giant Goldman Sachs is expected to confirm today that it will pay an average. As much as I despise them for their massive bonus's, if we tax them at 90% will they all move abroad!

Posted by tim miller @ 12:49 AM (705 views)
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7 thoughts on “Tax them to death, yes or no?

  • Just more politicking ahead of the Norwich by-election. Any predictions folks?

    NuLabour trying to look like it is being responsible and raising taxes to meet forthcoming defecits (but not from the local electorate).

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  • Why do these journo cretins not realise that the majority of high net worth City individuals have considerable tax avoidance schemes in place. The most common been the off shore “trust” and “loan” schemes. There are some guys working in the City with 90% net after tax.

    They are the same guys that use off shore companies to purchase houses to avoid stamp duty.

    They probably had a little chuttle at this article this morning.

    However, as these schemes are also used/enjoyed by the ruling classes, these loop holes will not be closed by legislation.

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  • uncle chris says:

    I’m quite happy for them to move abroad. We do not need this form of banking anymore – good riddance.

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  • Theemperorhasnoclothes says:

    “Bankers should pay 90 per cent tax on massive bonuses, a group of MPs said yesterday.”

    Pots… Kettles?

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  • @3 said: “I’m quite happy for them to move abroad. We do not need this form of banking anymore – good riddance.

    I agree 100%, these smart a*ses have no useful function to serve in this country.

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  • Are we reffering to the bonuses coming from the zeros added in their balance sheets or the tax payer money?
    The banker will not add any zeros in their accounts if they do not get any bonuses. Creating money is not that easy as we people think. This is why people have to work hard all their lifes to pay back the money created for them.

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  • Even a 100% tax would only put more money the way of accountants and lawyers ( and probably increase the bonuses by that cost ). If the business thinks that it is worth paying the bonus, why should we oppose it?! – and before anyone answers: I agree that the big bonuses may themselves be considered immoral, however they are an effect in the chain of events – it is the cause we should address, addressing events further down the chain just causes more distortion and does so in a less transparent way.

    If we are going to go down the regulation route we should be looking at how to count the capital of a bank in order to apply limits ( don’t count any debt, even convertible debt, etc… ) and it looks like UK Plc is going down that route. In Spain each bank has a team of third party comptrollers who keep an eye on the capital for the state, maybe we should follow suit. Or maybe we should try to go down the Glass-Steagall style route of separating the utility from the casino ( although this is fraught with difficulties ), just with better definitions. Or perhaps we should move away from the current form of capitalism ( my preference ). ( Or maybe, just maybe, we should not adhere to the capitalist system, but then this debate is futile anyway ).

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