The executives and traders at Goldman Sachs (NYSE:GS) and other successful financial firms in the US had better hope that the American government does not follow UK precedent on collect money from banker bonuses.
Alistair Darling, Chancellor of the Exchequer, said that the UK will tax every banker bonus over $41,000 by 50%. According to Bloomberg, “The Treasury estimates the tax will raise about 500 million pounds and affect about 20,000 bankers.” The tax will only cover this year and bonuses paid through April. It will hit all U.K. banks, as well as foreign branches and subsidiaries.
The news will almost certainly raise cries in Congress for the Administration to do the same.
Douglas A. McIntyre