90% Tax on Banker's Bonuses

Just heard this.
B. Lenihan to amend budget bill

Not sure who pays it though. The individual or the bank (ie like the UK scheme)

Indeed but it wont be applied to the AIB bonuses. Again…horse gone!

Aib’s market cap circa 450m at 50c a share.
Bonuses to these ‘strong performers’ 40m.

Ffs 8-

Reason #40,000,000 why the banks should have been allowed to go bust.

Not neccasarily - deduct it from the bailout - make them fund this themselves.

Just heard it on the news “banks future bonuses to be taxed at 90%”.

Lenihan is a traitor to his own people.

Amazed this can’t be applied to the €40m. The bonuses haven’t been paid so why can’t they be taxed when they are indeed paid? Lenny would clearly have known the reaction to this only applying to future bonuses so seems strange.

Retrospective taxation (ie Changing the rules that were in place when a tax liability originally occured) is a big no-no in most countries. It sets a very bad precedent for predictability and tax planning going forward. These are desperate times, but they are not that desperate!!

I assume that these rules will only apply to Irish banks. Otherwise the IFSC has serious issues

Oh for Fuck sake.

Even when FF is trying to please the plebs these days the fuck it up.

If the principle is to punish the transgressors, will they be applying the same 90% tax to all political salaries ?, to the Regulator ?, to the gimps in the CB ???

No, didn’t think so.

ed

Exactly! PAYE is only deducted at the time of payment. If these “bonuses” are yet to be paid then there is nothing retrosprctive about taxing them at 99.99%. So pay it to the banksters and then take it back at the same time. Barack Obama introduced a Bankers Bonus Tax this year so Minister Lenihan should follow his example.

Apart from the fact that it relates to employment in a previous taxation period. There is no way of taxing these funds in the way that the braying masses are demanding.

Apart from the fact that it relates to employment under a previous owner!

Why only 90%?

I have cash in a 1 year savings bond. Most of the interest will accrue in 2010 but I won’t receive the interest until January 2011. All of the interest paid will be taxed at the new rate of 27%

How then is there a problem taxing bonuses that were awarded (accrued) in a different time period

if they arbitrarily decided to delay the payout until 2012 and the Gov slapped on a 90% ax on it you wouldn’t complain?

as I wrote before

How can you tax someones bonus at 90%, that’s crazy.

The US passed a similar tax for firms that received TARP funds (ie government bailout).

No it only applies to state owned banks that would otherwise not exist anymore, because they would have filed for bankruptcy. They should considerate it a bonus that they still have their job.

I know, after they have deduced PRSI (or whatever they are calling it now) they will still end up getting a few cents bonus, crazy! :angry:

So they’re going to write a piece of legislation that only applies a tax rate, on one particular type of income, when it is earned by a very specific group of people. It’ll immediately get challenged as unconstitutional & rightly so. Otherwise people who’s bonuses are actually deserved will have to pay the same ridiculous tax rate.

This is just a moronic attempt to please the populace & deflect the blame off the Government.