facebook
twitter
rss
account
search
search
 

British bankers hit with steep bonus tax

Dec. 9, 2009 at 4:26 PM   |   Comments

| License Photo
LONDON, Dec. 9 (UPI) -- British Chancellor of the Exchequer Alistair Darling announced a tax on bankers' bonus checks, but said in a budget presentation banks would foot the bill.

The controversial assault on bankers' commission checks was expected to raise more than $800 million with a one-time tax that takes effect immediately, The Times of London Online reported Wednesday.

The plan calls for a 50 percent tax on bonuses topping $40,000 and includes an immediate rule change that treats salary raises as bonuses for one year to prevent banks from hiding commission pay in salaries.

With rumors of the tax coming ahead of the presentation, bankers had already begun shifting bonuses into salaries, creating hedge funds out of their individual earnings and moving money overseas, The Times said.

The budget proposal was marked by spending cuts and new taxes. People with incomes topping $32,500 a year would also be hit with a "stealth" tax starting in 2011, the Times said.

"This government preaches about fairness but these measures will hammer the low paid by cutting their pay while leaving most of the tax avoidance loopholes for the wealthy," said Vince Cable, the Liberal Democrat Treasury spokesman.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
GM recalls 221,000 Cadillacs and Impalas GM recalls 221,000 Cadillacs and Impalas
2
New National Security Cutter delivered to Coast Guard New National Security Cutter delivered to Coast Guard
3
First MT30 engine for Korean Navy frigates passes acceptance tests First MT30 engine for Korean Navy frigates passes acceptance tests
4
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
5
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
Trending News
Video
x
Feedback