On Bluff, Bluster and British Bankers' Blackmail
Bankers have been threatening to leave London in large numbers since last year’s 50pc tax on bonuses and the change in the upper rate of income tax from 40pc to 50pc was announced. However, there has been little evidence of an exodus to date. London’s pre-eminence as a financial centre has only grown.
And, more specifically, it quotes a particular financial chief, explaining why:
Tim Flynn, chief executive of Haymarket Financial (HayFin) and a former Goldman Sachs partner, said the 50pc higher rate of income tax was “just the cost of doing business in London” and was outweighed by the city’s many advantages. “We could have set this business up anywhere in Europe – we looked at Switzerland and other countries – and the tax regime would have been better for us as individuals. But we chose London".
One can raise taxes on the top earners - they will scream, and treat the taxpaying public to a display of pricey toys being thrown out of high-grade prams - and then, most likely, they will stay.