The UK Government Is Threatening A Huge Bonus Tax Again

UK’s British Business Secretary, Vince Cable, said this weekend that if UK’s banks didn’t show restraint when paying bonuses to their employees, the UK would tax them, presumably like Alistair Darling did last year, by 50%

For most banks, it’ll never work. 

Faced with a 50% bonus tax last year, many banks, like Goldman, simply paid their bankers a lot more.

Hedge funds and JPMorgan reacted to the tax by moving out of the country, or in JPMorgan’s case, threatening to.

But the Government still has to try, it seems, to par back huge bonuses, even if their efforts are failing miserably or they’re just breaking even.

From the Independent:

Vince Cable warns today that the Government will tax bankers’ bonuses as a “last resort” if voluntary restraint and other “sanctions” failed to end what he calls “a very damaging bonus culture”: “We have got to get this right”.

Click here to read more about the warning in the Independent >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.