Wednesday, Dec 09, 2009

Bankers bonus bleat

FT: Banks hit by 50% tax on bonus payouts

The 50% is on top of the marginal rate, so pretty hefty as it should be. But the banks already trying to wangle things, pleading how hard they work, etc etc

Posted by letthemfall @ 01:31 PM (1719 views)
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10 Comments

1. will said...

Only for thoses who declare their bonuses in the UK, I suspect.

Wednesday, December 9, 2009 02:00PM Report Comment
 

2. tenant super said...

This should have been extended to salaries and benefits in kind as several banks are simply shifting away from bonus onto basic salary and increasing benefits in kind such as paying school fees.

Wednesday, December 9, 2009 02:24PM Report Comment
 

3. Dreadymatt said...

Can you post the whole article, as the FT website says i can't access this? (cheers)

....are those bankers going to be able to escape paying this? I bloody hope not - we should have let Halifax, etc, etc, go bust (the government could have covered the deposits and pensions, etc at a far lower cost)

Wednesday, December 9, 2009 02:40PM Report Comment
 

4. rumble said...

FTSE loving it. Presumably LSE will pull the plug in a minute.

Wednesday, December 9, 2009 03:08PM Report Comment
 

5. jack c said...

FTSE 100 is virtually unchanged at 1600 hrs but FTSE250 is down 1%

Wednesday, December 9, 2009 04:05PM Report Comment
 

6. rumble said...

True. I know how to pick 'em!

Wednesday, December 9, 2009 04:19PM Report Comment
 

7. Andy said...

I read that it only applies until April 5, so presumably the bankers will just ask for this year's bonus to be delayed by a few months. The purpose is probably to keep headlines about big bonuses out of the papers for a while.

Wednesday, December 9, 2009 06:25PM Report Comment
 

8. stillthinking said...

The UK has a narrow tax base, the top 5% pay very nearly 50% of income tax. So actually there is a fairly big risk to government revenue should people move.

As a circular aside, the 5% in the UK have typically made their money by booking profits based on issuing debt, which is now guaranteed by the government, as there is insufficient economy to warrant the excessive debt issuance.

Thursday, December 10, 2009 10:06AM Report Comment
 

9. Stillthinking said...

I mean, more specifically, if we lose 1% (20% attrition) within that group because they domicile, fiddle, or otherwise make the effort to sidestep the increased tax, then the government loses 10% of income tax revenue.

So the problem, as has been stated many times, is that increasing high taxes reduces revenue. Labour did this purely to appeal to their idiot voter base and will be lucky to get even a minimal irrelevant rise in revenue while risking a dramatic drop.

Thursday, December 10, 2009 10:15AM Report Comment
 

10. stillthinking said...

The UK has a narrow tax base, the top 5% pay very nearly 50% of income tax. So actually there is a fairly big risk to government revenue should people move.

As a circular aside, the 5% in the UK have typically made their money by booking profits based on issuing debt, which is now guaranteed by the government, as there is insufficient economy to warrant the excessive debt issuance.

Thursday, December 10, 2009 10:15AM Report Comment
 

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