Friday, April 3, 2009

My views on 90% bonus tax

The 90% bonus tax is RIDICULOUS. High bonus is the market rate for bankers. Bankers have a choice of London, Hong Kong etc. With this tax, New York (hence the US) will lose talent to other countries and the US would no longer be the financial capital of the world.

Hong Kong's tax rate is 15%. New York's tax is 40%+. Add that crazy 90% bonus tax, who wants to work here?! On bailouts, the government should let banks fail and start over. Bailouts will result in major inflation and weakening of the US dollar. The 90% bonus tax was annouced AFTER the bailouts were received. it shudl have been announced as a criteria BEFORE the bailouts were handed out. Recall that some companies did not want the bailouts.

Finally, who owns the Federal Reserve? It's owned by the consortium of banks that make up the board of directors. These are the same banks getting the bailouts. Hence, the bailouts were given by the Fed to it's own owners. Of course the banks would take the bailouts in the first place. But the employees get penalized after the fact.

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