Sunday, March 22, 2009
Financial Times: Banker Fury Over Tax "Witch-Hunt":
Bankers on Wall Street and in Europe have struck back against moves by US lawmakers to slap punitive taxes on bonuses paid to high earners at bailed-out institutions. Senior executives on both sides of the Atlantic on Friday warned of an exodus of talent from some of the biggest names in US finance, saying the “anti-American” measures smacked of “a McCarthy witch-hunt” that would send the country “back to the stone age”. ...
“There are three big industries where the US has global leadership: financial services, media and technology. Introducing this 90% tax is like taking one of those industries out the back and shooting it,” said a top Wall Street executive.
In Frankfurt one employee at a US investment bank said the new tax measures would “send [the US] back to the stone age.”
Wall Street Journal: The 102% Tax: Forget Stabilizing the Financial System. Congress Is Hungry for Revenge, by James Taranto:
Wall Street Journal: The Backlash Against the AIG Bonus Backlash, by Stephen Grocer:
The flap over the AIG bonuses spurred the House of Representatives into quick action. But instead of a measured, well-reasoned bill, the House passed a bill that was more about revenge. The legislation would impose a 90% surtax on bonuses granted to employees who household’s income is more than $250,000 at companies that have received at least $5 billion from TARP.
The Business Insider: Anger and Panic At Goldman Sachs Over 90% Tax, by John Carney:
But the vote earlier this week to impose a 90 percent tax on bonuses at TARP supported banks has many at Goldman feeling betrayed, fearful and angry.
"Fuck Obama," one person said aloud on the floor, giving voice to the feeling of political betrayal.
Word spread quickly that because the bonus tax only applies to TARP recipients, foreign banks wouldn’t be covered. At least a few people at Goldman Sachs have already called recruiters. And recruiters have stepped up efforts to poach Goldman employees offering jobs safe from the TARP bonus tax.
The Business Insider: 90% Tax? Now We Really ARE Screwed, by Henry Blodget:
The Volokh Conspiracy: How About a 90% Tax on Some of the People Who Caused This Mess?, by Jim Lindgren (Northwestern):