Monday, October 19, 2009

Government steps lightly around ‘minefield’ of windfall bonus tax - Times Online

Government steps lightly around ‘minefield’ of windfall bonus tax - Times Online: "The Government could introduce a law that caps bonuses at a fixed amount or imposes greater restraint through new guidelines. This would mark a U-turn for the Treasury and the Financial Services Authority (FSA), the City regulator, which have said that it was for the private sector to set remuneration."


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If it takes skill or an uncommon ability to earn your employer large profits (legally) then the person who does so should be remunerated in a way that retains that person for future profits.

An example of government interference in remuneration is the RDR proposals to ban commissions for anyone but the representatives of the banks and the insurers. We believe this is unwarranted interference in competitive markets and fails to recognise the ability of some advisers who are capable of persuading consumers to save for the future thereby reducing the burden on the state.

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