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City Bonuses, too big or driving the economy?

Posted by mattquaife on Monday, 19 February 2007 10:52:40

Hello David,

I would like to hear your opinion on city bonuses.

Peter Hain's recently argued that two thirds of city bonuses should go to charity. Do you think this is a just comment? If they should be reduced should it be done by taxing, i.e a higher income tax bracket?

I am a final year maths student who has a graduate place in fund managment and thus will benefit personally(hopefully) from such bonus schemes and therefore my opinions could be seen as biased. However, I believe London is the driving force of our economy, London is becoming the leading financial centre of the world, overtaking New York and any reduction of ensentive would make the city less competative and therefore loose its attraction and its talented people. London would stop fuelling our stable, growing economy, do you agree?

Kind regards

Matt Quaife

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Posted by canvas on Monday, 19 February 2007 10:59:57

I think there should be substantial tax advantages offered to people who donate large amounts of their bonus to charity. It makes sense. Peter Hain is making a valid point.

Posted by physics911comfan on Monday, 19 February 2007 12:38:53

IT could be that these very large bonuses are keeping the economy artifficialy stable
There is very little else keeping it up , apart from : money laundering
http://www.cia.gov/cia/publications/factbook/geos/uk.html#Intro

I notice we have lost a marine fuel tanker since the last update
we now have 65

 

Comment edited by physics911comfan on Monday, 19 February 2007 14:04:18

Posted by StevenL on Monday, 19 February 2007 17:09:53

It's not the difference between city bonuses and average incomes that the government should be worrying about. It is the difference between average incomes and the exhorbitant cost of housing that is the issue.

Large amounts of money being made in the city is good for the UK. Trying to remove that wealth is the politics of envy. Ironically it is the same old socialists you will hear complaining about city bonuses that you will hear babbling excitedly about their house price and impending retirement to the Costas.

They try to turn the younger working classes against 'the rich', when it is not the rich that are posing the problem, it is house prices. There are a number of factors in the recent house price boom, city bonuses is one of them, but supply of new housing can be managed by the government, building new houses and public transport links creats jobs too.

The unfortunate fact is that rising houses are politcally popular. City Bonus's are not. If the socialists wanted to do something to help normal working class people get a better start in life they would stem immigration, build more starter homes, tax vacant properties like nothing you've ever seen instead of giving council tax discounts, tax second home ownership a lot more, look at creating regulated shared equity products and stop fiscal penalisation of the family.

The fact is these old socialists want their houses to keep going through the roof so they can have a lazy life in Spain, they want to tax the rich because it gives them something to cheer about. They don't gove a stuff about the younger working class generation.

Good luck with your job in the City Matt. I hope you do well. There's nothing wrong with having a lot of money providing you don't let it turn you into a knobhead. Money can spoil people just as much as poverty can. Try to remember which country gave you the opportunity to succeed and never think 'stuff the UK I can go anywhere I want now'. Most of all try to buy British, support our SME sector and share the wealth where you can.

Posted by not4turning on Wednesday, 21 February 2007 10:16:12

Peter Hain shouldn't bite the hand that is feeding UK plc.

Also - he completely misses the point (or chooses to ignore the fact) that the treasury benefits to the tune of 40+% on payment of each "disproportionate bonus"

Incentivise people to make charitable donations - fine

Threaten them with a "big fight" if they don't - an old labour re-distributionist showing his true colours.


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