European bankers can easily escape the bonus tax.
Just go work for a bank that doesn’t curb bonuses.
The new European tax on bonuses announced today invites banks to pay the bonus tax themselves.
From the NYTimes:
Banks that don’t curb the salaries of their biggest earners will have to set aside more capital to make up for the risk.
So that was easy.
Here’s another reason this won’t be an issue.
Goldman Sachs in January responded to the 50% bonus tax on UK bankers by just paying its bankers a lot more, aka absorbing the costs themselves. We’re guessing they will – and every other bank will too, to remain competitive – take on this extra burden, too, so their bankers don’t have to.