Thursday, March 19, 2009

Tax on employee bonuses

Is this possible? The House of Representatives overwhelmingly passed a bill levying a 90% tax on all bonuses given by banks who took TARP money even if they took it as forced by Treasury. In hindsight this may be an equivalent to Smoot Hawley, different completely, but an insular reaction to populist sentiment. The financial centers could now transfer to London, Hong Kong, Singapore, and Tokyo.

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