50% tax looming on bonuses.

It wouldn't change the city share.

City and state taxes are calculated on the total income, not the income after federal taxes.

Also, in theory, some of the federal money should come back, particularly when they have to bail out NYS.

How would it not affect the city share? They are not taxing at the individual level, but taxing the comp. pool.

Say firm A sets aside 1b for bonuses, 500m goes to feds, 500m left to distribute. That's half the taxes the city & state would have received had 1b been available for bonuses. NY & NYC are net outflow to Feds, not inflow.

It will be interesting to see what this does to munis, if the anticipated income does not come in the new year to fill state and city coffers.

they already get taxed close to 50%. believe me..i know

I think you are missing the point. There is going to be a huge impact on state & city treasuries if this goes through and I don't think the Feds are going to turn around and give half to NYC/NYS.

Worse yet, bankers from Europe with all powerful pounds sterling or euros won't be in the mood to buy here either. From the Times in London. France is preparing to follow Britain's lead with a one-off 50 per cent tax on bankers' bonuses, according to a French Government source.

President Sarkozy is said to have agreed to include a levy on pay-outs of more than €27,000 in the French budget or in a forthcoming law on regulation of the financial services industry.

A spokesman for Mr Sarkozy confirmed that he was planning a special tax on bank bonuses but added that the details had yet to be finalized.

I thought this was being discussed in the UK. I hadn't read of it occurring in the US. 10023, do you have a link?

Details are fuzzy - what I have seen indicates that all banks will have to give back 50% of bonus pool. It's on the Times, Telegraph, etc.

bonuses are already taxed here in the US by close to 50%

FAT CHANCE.......no

SLIM CHANCE......no

NO CHANCE you will see this here.

marco, that is the tax employees pay. The UK scheme is a payroll tax, so it imposes a tax that the bank has to pay on each bonus. Net result may be lower bonuses:

"Banks will have to decide whether to maintain payments to employees, allowing the additional tax expense to boost the cost of compensation and reduce profits for shareholders, or to protect profits by slashing bonuses. In some cases, firms may have to pay out bonuses because the terms have already been agreed with staff, said Jo Keddie, an employment lawyer at London-based Dawsons LLP."

Still, no sign of any real move to pass one here.

The UK is a communist country yeah baby, sing it again.

sing it again

Yep, I was right. The UK "special" bonus tax is going to impact NYS and NYC tax rolls this year.

ep, I was right. The UK "special" bonus tax is going to impact NYS and NYC tax rolls this year.

how do you know?

Smaller bonus pool worldwide.

good point.

I doubt the size of entire bonus pools will come down. More likely that the amount allocated for UK offices will come down.

that would bring down the size of the entire bonus pool. Its called subtraction.

always the teacher somewhereelse

My response is to the comment that it would impact NYS and NYC.

whatever its in response to, its inaccurate. "entire bonus pools" mean exactly that, entire bonus pools. and of course it will impact the amount available for NYC.

> . It does feel as if the majority of the decline has occured

Perhaps if you were a little better a student, folks wouldn't all think you were a putz.

One more dumb post from you. You're down to 3...

Not necessarily true if the bonus pools are allocated and kept separate.

bob, wealthy people from other countries buy quite a few of our overpriced condos.

> Not necessarily true if the bonus pools are allocated and kept separate.

Then they wouldn't be "entire bonus pools". wow, jeez, stop with the semantics already.
This will clearly affect salaries everywhere.

You can make up as many imaginary pools as you want, its all coming from the same damn place!

I don't think it will have any effect on bonuses outside of UK.

"Dec. 18 (Bloomberg) -- Deutsche Bank AG, Germany’s biggest bank, plans to spread the costs of the U.K. bonus tax to all employees worldwide, risking a backlash from bankers outside of London.

Chief Executive Officer Josef Ackermann, in an interview with the Financial Times, said the bank wouldn’t restrict the cost of the tax to the U.K. bonus pool.

“We will clearly globalize it,” Ackermann said. “If parts are paid out of the bonus pool, we would seek to globalize it. It would be unfair to treat the U.K. bankers differently.”"

Yes, that is one option. I think the big banks will bite the bullet and pay the tax on top of the already allocated bonus pools or UK will be hit. I think the net effect of any of this is pretty small. However, I wouldn't be surprised if companies started moving offices out of London.

> I don't think it will have any effect on bonuses outside of UK.

You can keep repeating yourself, but the malthus link pretty much demonstrates that what you have claimed is simply not the case. It has already affected NYC bonuses, no matter what you want to be the case.