Why Labour's high tax plan is stupidity

[TimberWolf]

Is the job that bankers do really so difficult that they couldn't be replaced with people earning £50-100K, or indeed the cleaner?

Same with F1 or football, the free market seems to go nuts, self-destructive even, on salary when left to its own devices.

[DodgyAgent]

Is the job that bankers do really so difficult that they couldn't be replaced with people earning £50-100K, or indeed the cleaner?

Same with F1 or football, the free market seems to go nuts, self-destructive even, on salary when left to its own devices.

The only explanation must be that there is not enough competition in the world of banking. With the disappearence of Merrill Lynch and Lehmans there is even less.

[doodab]

So explain how they being employees of banks are better able to avoid tax than a contractor (who presumably makes a good living off the back of them) who can be a ltd company

Actually, I've never worked for a bank, hedge fund or any other financial services firm.

There are quite a lot of ways people reduce their overall tax burden by structuring bonuses cleverly, using offshore schemes, treating what is essentially income as a capital gain, and so on, not dissimilar to tax avoidance measures used by contractors. It's also not uncommon for some of the higher earners to be non-domiciled.

@HaB, I'm saying it's time we called their bluff and encouraged those who want to leave to leave. I won't be crying foul when they do. Promise.

[OwlHoot]

I happen to think if you stop kowtowing to the people who preach the profit at all costs dogma the UK will be a better place. These people are in the main spoiled little rich folk who throw their toys out of the pram when asked to pay their fair share of the costs of running the place they have chosen to live. We should let them go, it may cause some short term pain but in the long run we will be better off.

I presume you're one of them.

Fair enough. My reply was a bit OTT, but that phrase "fair share of tax" is like a red rag to a bull.

[Mich the Tester]

Again, it’s not bankers throwing their toys out of the pram, it’s chemicals companies who trade with each other. The big ones are leaving partly because of taxes, but partly because of something much scarier; Britain’s credit rating will quite probably be cut, and almost certainly if Brown gets back it. This is extremely important for chemicals traders and buyers as they depend on being able to get letters of credit (bank guarantees). One factor in creditworthiness is country risk; if the country risk is higher, the max value of a letter of credit for the trader is reduced, which kills business. So you need to be in a country with a good credit rating. Add to that, as I’ve explained, the SMEs will move to follow the big companies for the sake of staying in business. THIS HAS NOTHING TO DO WITH RICH BANKERS THROWING THEIR TOYS OUT OF THE PRAM, except for a minority of cases. It has much more to do with moderately wealthy people wanting to save their businesses.

[minestrone]

I have always fancied having a go at building a pyramid.

[DodgyAgent]

Actually, I've never worked for a bank, hedge fund or any other financial services firm.

There are quite a lot of ways people reduce their overall tax burden by structuring bonuses cleverly, using offshore schemes, treating what is essentially income as a capital gain, and so on, not dissimilar to tax avoidance measures used by contractors. It's also not uncommon for some of the higher earners to be non-domiciled.

@HaB, I'm saying it's time we called their bluff and encouraged those who want to leave to leave. I want them to leave en masse, and I won't be crying foul when they do. Promise.

What practical reason in the world is there for getting high earners to leave the country? other than through sheer envy?

[doodab]

Is the job that bankers do really so difficult that they couldn't be replaced with people earning £50-100K, or indeed the cleaner?

A lot of what they do requires in depth knowledge of international finance, technology and some quite hard maths and i'm sure that there are some very clever folk out there. Some of the smartest people I know work in banks.

It's the idea that this talent entitles them to ridiculous wealth and comes without any sort of social responsibility that makes me think we are better of without some of them.

I'm not suggesting they are all selfish *******, in fact I count some of them as close friends, and I'm not suggesting that what they do adds no value to society, but the ones who think we owe them something over and above their already ample rewards and threaten to leave at the hint of a tax rise wind me up a treat.

As an aside, I think the quantity of intellectual talent getting sucked into the city is at least partially responsible for the decline of the wider Britain.

[Mich the Tester]

What practical reason in the world is there for getting high earners to leave the country? other than through sheer envy?

I suppose I might get to see my parents a bit more often, so I’m not all that bothered.

[DodgyAgent]

A lot of what they do requires in depth knowledge of international finance, technology and some quite hard maths and i'm sure that there are some very clever folk out there. Some of the smartest people I know work in banks.

It's the idea that this talent entitles them to ridiculous wealth and comes without any sort of social responsibility that makes me think we are better of without some of them.

I'm not suggesting they are all selfish *******, in fact I count some of them as close friends, and I'm not suggesting that what they do adds no value to society, but the ones who think we owe them something over and above their already ample rewards and threaten to leave at the hint of a tax rise wind me up a treat.

As an aside, I think the quantity of intellectual talent getting sucked into the city is at least partially responsible for the decline of the wider Britain.

What do you mean by social responsibility? Handing out cash?
Contractors are no different. If the banks all re locate to Switzerland taking their loot and high paid jobs out there and in so doing decimate the IT contractor market, I bet you'll be the first to jump over to Geneva for a nicely paid bit of contract work.

You start playing the game of judging everyone else's worth then the spotlight will be immediatly turned on you.