I was on the Today programme this morning (here) defending bankers, up against Michael Meacher who has drafted a private members’ bill imposing a punitive retrospective tax on bonuses. This, of course, is simply vengeance – the political equivalent of smashing Fred Goodwin’s windows. And for such a bill to be even before Parliament sends a dangerous message about the mood in Westminster.
My argument is simple: Britain does banking phenomonally well, and we profit from hosting this highly mobile breed. I didn’t give statistics on air, but the financial sector generates a quarter of all corporation tax, the richest 1 percent pay 23 percent of income tax.
What happens if we threaten 45p tax rate rates, or have ex-ministers lay down legislation for arbitrary tax raids? The bankers won’t form a union and protest. They will just go: to Zurich, Singapore, Hong Kong, wherever.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in