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3. The 50% bonus tax in GB on discretionary bonus sounds good but is only another propaganda trick as the headline effect is not what it sounds to be. Darling claimed himself that they think to make 550 mio GBP in additional tax-income. To put that into perspective only Goldman plans to payout 17 bil. in bonus with approx. 10% of its workforce in GB that would make 1.7 bil. in bonus just for British Goldman droids. Thats alone would cover the claimed bonus income of the British IRS - does not make sense as Britain with 1 mio people working in the city should be rather a 20 bil pool of bonus to be taxed. Just some populistic propaganda for the elections and calm down Mainstreet.
By Thomas Penny
Dec. 9 (Bloomberg) -- Chancellor of the Exchequer Alistair Darling imposed a 50 percent levy on banker bonuses and said he will increase income taxes after elections next year as the worst recession on record drives up U.K. government borrowing.
The Treasury expects to raise 550 million pounds ($896 million) targeting payouts at banks in the next few months and another 3 billion pounds from incomes earned after April 2011. Borrowing will rise by 4.6 billion pounds to 611 billion pounds in the four years through March 2013.