Bankers ‘Let Down’ as Tax Makes London Most Expensive Update1 - Bloomberg.com.
Bloomberg reports:
The U.K. government’s decision to raise the top rate of income tax will leave residents earning more than 1 million pounds ($1.6 million) a year worse off than they would be in any of the world’s other major financial centers.
“People feel let down,” Nick Bacon, a London-based financial services tax partner at accounting firm KPMG, said in a telephone interview. “They thought that the U.K. could always be relied on as being tax-friendly.”
Oh dear. Poor darlings. As TUC general secretary Brendan Barber said:
I'm sure the seven and half million other Londoners will be over-flowing with sympathy today. Perhaps KPMG would like to set up millionaires' aid so that we can send donations.
The truth is that the recession that cost many Londoners their job was caused in the finance sector. It is only right that London's super-rich now make a fair contribution to putting right the damage.
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The problem is that the vast majority of these bankers are not British, with no interst in local British politics. It has now been 3 years in a row that this left-wing administration has used them as cheap political bait (first the non-dom thing, then the 50% tax rate, and now the bonus tax.
Frankly they don’t have to remain in London to continue suffering this type of treatment, and they will soon realize that it is as easy to find an American-language school in Geneva, Zurich or Singapore as it is in London.
Those who will most suffer from this administration’s policies are those who depend on the bankers’ spending for their livelyhood. The bankers, meanwhile, will laughing all the way to the bank.
@Edoaurd (London Expat)
Edoaurd
I key purpose of tax is to price unattractive, harmful and anti-social activity out of the market when the market has failed to do so
A lot of the banking activity you refer to meets this criteria
Richard
If this was the key purpose of the tax, it has spectacularly FAILED!
And I am convinced that any attempt to use taxation tools for the pursuit of regulatory objectives is condemned to the same fate: failure.
And the victimes of these failures are not the bankers.
@Edoaurd (London Expat)
If youtr last comment is true why are you protesting?
Please don’t tell me this is banker aid to the poor of the world who sill suffer the incidence of the tax on bank bonuses
we don’t and won’t believe you
The bankers are getting paid as usual.
The shareholders are getting stuffed, i.e. everyone with a pension fund or 401-K.
Some bankers will leave the UK and take with them their spending and their tax revenue. A lot of people depend on that.
How much more evidence do we nned to call this a total failure?