Government regulators clearly have a lot more power across the pond.
A 50% tax on banker bonuses would never pass through Congress.
And if it did, it would generate much more than £500 million, as we have many more bankers earning much larger bonuses (50% of Lloyd Blankfein’s alone would be about £8 million).
From the Guardian’s Live Blog: Darling is now talking about “tought decisions on tax”. His decisions will be taken on the basis of fairness.
No bank has not benefitted from taxpayer help.
This should be a time to for banks to rebuild their capital base. A windfall tax would make this harder. So he has rejected this.
But some banks want to pay “substantial rewards” to their staff.
From today there will be a 50% tax on any bonus worth more than £25,000. That will be paid by the bank, not the individual. This will yield just over £500m. It will pay for measures to help the young and others get back into work.
Read more coverage here.