Darling's own goal - taxing the bankers

as well intentioned as it is it will kill the one industry the UK needs to remain ie financial services

its attacking the wrong targe with the wrong weapon.    a foreign bank risking its own money in UK is not a direct threat to the british economy...it would be a threat to its own country in way of a bailout but strictly speaking thats not darlings issue.  now if said bank makes a load of money they have to pay a nice big corporate tax to the UK...         with this new bonuse tax  big foreign bank will just say thanks but no thanks  and the resulting corporate tax loss massive loss for the UK economy (as will be the unemployment fallout/housing decline/service sector collapse)

its a bit like a casino throwing out its high roller..   the casino suffers not the gambler

The UK govt seems to be going nuts with all the crazy new laws and measures they're coming up with...

yeah...     like i said i appreciate the fact that the public wants bonuses curbed..   but seriously it needs to be done in a manner thats not going to kill the industry London was built on

i think i read yesterday to pay someone a gbp 50,000  bonus it will cost  gbp169,000

and i some of the institutions are now calling themselves "advisory" rather than banks thus avoiding the tax haha... so even LESS money for UK!

LOL That's the thing isn't it? They can try and set up as many barriers as they want, the corps will always get around it.

yeah spot on...

It's a popular appeal thing. Appeals to the masses. Get's us votes.

It really doesn't sound like your people are very happy with you Brown

im surprised he lasted as long as he did

When you look at the alternatives, he's the least scary one

Haven't gone yet. Thanks @miffed. The people fail to see the big picture. Herd mentality. After all I've done for them ...

haha...     i only realised recently mr brown that you only had one eye

I have two. It's just one is made of glass. Enables me to see life through a prism.

US seems to be stalling on the bonus issue...   but then they like to procrastinate...  and seeing the reaction to the UK's they may think twice!

Hi koogle, do you have a link to the story in question. I'm not up on the matter. Cheers

sure..  let me find a good one

here

Well it may be yet another crazy UK plan, but the banking community is like organized crime with insane ideas put into practice. The British government at the moment is very weak and I don't see them straightening things out anytime soon. They've taxed the little guys to death, now they want the big guys.

It's a shame that the UK can't follow the example of it's own former colony in Hong Kong where a banking country charges 15% tax to all residents and still is cash rich.

but theres no point in my mind taxing the wrong big guys...   it will kill the economy they are trying to support

HK is interesting ..  and the jockey club controls all the gambling with its non profit taxes helping the community taking a massive burden off the govt

Yes and in theory the National Lottery could be used in a similar way but the UK gov is not very forward thinking

yeah that would be a good idea

And every opportunity that Richard Branson has had to acquire entities like National Lottery and Northern Rock has been blocked by the Government basically because they know it he would do a better job and show them up

as one british tabloid put it  - darling just screwed more people than tiger woods

interesting topic. many traders in london with "next stop geneva" and "will the last person to leave the city of london please switch off the lights" type greetings on their bloomberg headers this morning. this is not a joke at all. modern economies and fast moving business (especially financial markets) can off-sticks to geneva or elsewhere in a heartbeat. london was always the financial centre of europe even after the euro launched... euro born in frankfurt, but london owned it as a trading centre. however, today you can trade from a blackberry/bloomberg anywhere from a chalet in the foothills of the alps just outside geneva kitted up just like a london dealing room. increasingly many are realising this and setting up such places. smaller firms for now but heard some banks are having a look at central geneva locations. makes sense. the UK gov can only lose from this tax trade. do i sound like too much of a finance person...perhaps, but i am just being brutally honest. in this day and age of modern finance and globalisation for the UK to lose its competitive edge within the european financial services business would be complete madness. the is all about the general election next year and playing the political card to the masses to visibly come down extra hard on bankers. the real loser will be the average UK household over the next 10 years as the UK's economy becomes ever less vibrant/dynamic. shame as that is the one thing the UK always was throughout history. crucial juncture here some would argue... while others speculate the city will take the medicine and get over it. hmmm. let's see...

yet another reason to laugh at the UK  #643

indeed! rather laugh  than cry  that's what i say.