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Wednesday, January 06, 2010

Cretins

Were the ordinary voter ever to require proof that we are being governed by cretins, the leaks from the Treasury about the "success" or otherwise of the 50% tax on bonuses makes for interesting reading.

It would seem that the 50% "one off" (if you believe that this is a "one off", then I put you in the same boat as our illustrious government) on bankers' bonuses is not having the effect that the government wanted it to have.

Our "leaders" wanted the tax to discourage banks from paying high bonuses to their staff.

Anyone with the slightest understanding of human nature will understand that when it comes to money, and governments trying to forbid people from making money, human beings can be remarkably stubborn and creative in the methods used to avoid government interference.

Therefore, as predicted, in the short term the banks will be paying out the bonuses (in one form or another) and either absorbing the increased tax themselves or finding ways to avoid it.

Needless to say they are also looking for ways to transfer their operations out of the UK, in order to avoid the unfavourable tax regime being implemented by the government.

Does this matter to you and I?

Of course it does!

The City, like it or not, provides a large chunk of tax revenue for our "illustrious" political masters to spend on their pet projects. Once the government starts hacking away at the money supplied by the City, there is precious little left to do but increase the tax burden on the rest of us.

The fact that the government is disappointed that bonuses have not been curtailed, indicates just how cretinous they are. The higher the bonuses, the greater the tax take.

The Treasury will do very nicely out of this bonus season, raking in around £4BN.

Such a pity that during times of plenty Brown overspent the surplus, and left us with a massive debt to pay off.

As said, we are being governed by cretins!

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