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Econoblog

Discussion and analysis of the latest economic issues.

By Sean O'Grady, Economics Editor of The Independent.

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Alistair Darling gets it right

Posted by Sean O'Grady
  • Monday, 7 December 2009 at 11:56 am
Taxing bankers’ bonuses – what a good idea. This, for a change is a clever and practical idea from the Treasury. Paying inflated bonuses to (taxpayer owned) Royal Bank of Scotland staff may or may not be a great business move, but it made no sense at all to withhold bonuses from RBS staff while their counterparts at Barclays capital and the rest got them anyway.

That was unfair all round. Far better, if you don’t like the bonuses being paid by banks whether they’re publicly owned or not to tax them all on a special, though equal basis. And, given that all of these banks would be bust and most of their staff out of work were it not for all the state money going into the sector, entirely justified.

Alistair Darling deserves our thanks. Maybe it’ll even be a vote winner.

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Comments

Vote Winner???
aardvark11 wrote:
Monday, 7 December 2009 at 04:44 pm (UTC)
Is this really how elections are decided? One measure that may or may not have popular appeal? Never mind that Brown has sold much of our gold at ludicrously low prices, wrecked our once great private pension industry, wrecked the economy for decades to come etc etc etc. I can only say if this is the case the electorate get what they deserve.