How excellent!

Almost 900 UK bankers paid €1m plus by US banks in 2014

That’s at least 450 million paid in income tax and NI then.

But of course this is The Guardian:

The disclosures about pay follow the revelations a fortnight ago that seven City banks paid a combined £21m in corporation tax in 2014.

Yes, if the money is paid to the bankers then there’s more tax collected than if it remains as profits…..

18 thoughts on “How excellent!”

  1. It’s like football, God forbid that the workers get a share of the money sloshing around, since they aren’t the right sort of workers, ie. They are richer than the people who write that workers should get more money.

  2. I slip this point into every conversation when I get the chance (which is more often than you think).

    As I deal (mainly) with bright (if somewhat slightly misguided but all well-paid) people, you can sometimes hear the light bulb going on.

    You never get to the inequality of outcomes might be good bit, but at least they are on the first step to realising that socialists consume and destroy wealth through ‘redistribution’ without ever realising that it you want to raise (as in collect) taxes, you really should be creating wealth first on an on-going basis as a pre-condition.

    I am still trying to get my socialist friends to accept that not all non-socialists are baby-eating bastards; that we too want a rich, healthy and poverty-free (but also free) society. The difference is that we learnt from the 20th century.

  3. They really just don’t *get* in a fundamental way that corporation tax is a tax on net profits, so after costs, investments, salaries etc.

    Why is this so hard?

  4. ” if the money is paid to the bankers then there’s more tax collected than if it remains as profits…..” Would it really remain as profits? For how long would the shareholders have the patience not to prefer it be distributed as dividends?

  5. The inconvenient truth

    KJ – do you know something that we don’t?

    How easy is it for people on PAYE to avoid paying the correct income tax….??

  6. You guys haven’t heard of pension relief, payments in kind or charitable donations then, I’m disappointed in you.

  7. Well, KJ, pension relief is mainly just a deferment of tax, and is severely limited for someone on a million a year; payments in kind attract tax and NI as if they were cash, and charitable donations hardly boost the bank account of the donor, so are pretty useless as a way of obtaining more money.

  8. The inconvenient truth

    You don’t realise that pensions are taxed?

    What proportion of bonuses are donated to charity, do you think?

    What ‘payments in kind’ are you thinking about?

  9. “Is corporation tax plus dividend tax more or less than the taxes payable on the bonuses?” Currently less, especially if in your latter “taxes” you include the national Insurance contributions.

  10. The inconvenient truth

    Fairly obvious really – at learn to anyone with basic knowledge of banks and the tax system!

  11. “How sure are you that all these people pay their taxes?”

    No more sure than one can be that you or anyone else pays their taxes.

    “You guys haven’t heard of pension relief, payments in kind or charitable donations then”

    Of course we all have. What’s the relevance – is this related to personal experience or something?

  12. @ dearieme
    Dividends may only be paid out of profits on which tax has already been paid (unless the company gets an order from the High Court permitting it to distribute them out of subscribed capital, which means the shareholders suffer tax on the retuirn to them of money that was subscribed out of their after-tax income so involves double-taxation).
    As far as Tim’s point is concerned it doesn’t matter whether the profits are retained or distributed except for the small share which is paid to UK shareholders liable to higher-rate taxation.

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