French Target of 360 Million Euro Tax Bonus
Economy February 19th, 2010
French estimates could reap 360 million euros (approximately USD522 million) of tax bonus perbankan.Menteri French Finance Christine Lagarde said the tax was imposed on about 2,500 brokers and financial industry workers.
Lagarde said it believed the move would not cause an exodus of workers from the French finance. Realization of the tax bonus will even be pressure for the United States (U.S.) to implement similar measures. “I’m not sure will happen exodus of brokers.
They want to go? London? “He said to the daily Le Figaro. As we all know, English is also implementing a similar tax on industrial workers keuangan.Pajak 50% of the bonus received by the bankers and brokers were applied if they receive a bonus of more than 27,500 euros.
Lagarde added, the tax revenue of 360 million euros it, worth 270 million euros will be set aside to support the guarantee fund for deposits, which will increase security for banking customers. French President Nicolas Sarkozy and British Prime Minister Gordon Brown agreed to implement the tax bonus in the banking meeting in Brussels, in December last year.
The goal, so that the managers of banks and other financial institutions more accountable. Previously top French banks, BNP Paribas, caused public outrage when in August last year announced plans to provide billions of euros worth of bonuses for its staff.
BNP Paribas is still reasonable steps in the corridor of rules agreed in the G-20 and needs to be done to prevent hijacking of its best employees if the bonuses are not worth being poured. While in the U.S. is not supported similar measures the government. However, Lagarde said, in fact the U.S. public opinion against the government attitude.
Therefore, he advised President Barack Obama began studying a similar policy after completing regulatory reform in the field of health insurance. “I can not imagine the U.S. will allow people to do their banking so wasteful. Politically, it was impossible in a country where unemployment rates reached 10%, “he said.
In the U.S. big banks allegedly preparing to announce the annual bonuses for its executives. It was estimated would cause a political storm in the U.S. given bonuses and compensation precisely what has been described as one of the triggers the global financial crisis. “Granting this bonus would have offended the American people.
It touches me personally, “said a member of Economic Advisory Council President Christina Romer. While White House spokesman Robert Gibbs in a press conference to say, many banking executives who did not want to understand about the mind of the community.
Douglas Elliott, a former U.S. banker, assessing the public would be very angry if these bankers receive huge bonuses. “In short, people will ask that these bankers were hanged or shot,” he said.
