Here is one way that the British government could solve a number of problems all at once.
Why not introduce a supertax on extremely high earners? And craft it so that it specifically affects the amount 'earned' by Sir Fred Goodwin?
Taxing Goodwin's millions to the hilt would be a neat way of punishing his mistakes, keeping within the law, as well as clawing back tax, giving high earning bankers a nasty dilemma, and throwing the electorate a meaty bone to satisfy their anti-banker lust. What's not to like?
I thought of this a while back and am reminded of it by Felix Salmon, who recommends it as a way to resolve the AIG bonus situation.
3 days ago