mowlas
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Fair point but many of these bonuses will be funnelled into ‘tax efficient” schemes so the tax haul may not be that significant.Playing devils advocate here. If a banker previously had his bonus capped at say 500k. The government get circa 250k in tax.
Now if the same banker now gets his bonus uncapped and gets a 5m bonus then the government gets 2.5m in tax.
Might not look good to the average man in the street but it means the government earn more tax. Which helps everyone (in theory).
On the downside, the reasons for these caps was to help minimise the chances of another banking system crash… the costs of which make Covid look like a bargain at £1.162 trillion in 2008/9.
Come to think of it, can that all please be paid back before a single bonus is paid?
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