Bankers howl as bonus tax introduced
"banks would be charged a 50 percent tax rate on bonuses they pay to their staff above 25,000 pounds starting today until April 5, 2010, a powerful disincentive for big payouts in this year's Christmas bonus round. The new tax would apply to all banks, building societies and branches of foreign banks operating in Britain.
The government hopes the move will encourage banks to use additional cash to shore up their capital bases, rather than pay high salaries."
It's a good start. This bit -- including no corporation tax relief -- looks good, it should be possible to put in strong measures to stop dodgers, and some interesting moves on offshore tax evasion. A higher windfall tax would have been better. Of course bankers, many of them groaning with a sense of self-entitlement, are howling.
"This is extreme victimisation," says one.
Get used to it. And let's hope there's more like this to come. Let's start with the United States.