The London Mayor’s criticisms of the Prime Minister for his anti-banker taxes and regulations are quite harsh.
Boris Johnson spoke out against David Cameron this week for taxing top earners 50% (a possibly counter-productive measure, as we’ve mentioned) and for not putting an end to the banker-bashing within the administration that has emerged in recent years, according to the Daily Mail.
Boris Johnson: ‘The rhetoric does matter. We need to send out a powerful signal to the rest of the world that we are open for business and understand the vital importance of wealth creation, so I do worry a bit about the mood music.
‘It’s no secret that I think in the long run a 50p tax rate is not going to be competitive with our major rivals. They all have lower top rates of tax now than the UK. It can’t go on forever, in my view.’
Johnson is a bit of a wild one. Earlier this year he warned Cameron that cutting the housing benefit could create “Kosovo-style ethnic cleansing.” (Sounds like someone might get alone with Steve Schwarzman, who loves to call upon tragic moments in US history for analogies.)
But his words against Cameron’s policies have a bit more logic. Johnson is concerned about the wealthy evacuating Britain. Many, like Jamie Dimon, have threatened, but little more than a number of hedge fund managers seem to have actually left the country and moved to tax havens recently. Still, they’ve all taken multi-million salaries (and the taxes that come with them) out of the country.
Johnson’s point is that retaining the 50% tax rate on incomes over 150,000 could make the British economy “uncompetitive.”