Thursday, 19 March 2009

Bonus surtaxes

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.

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