Hhhm. Even though the UK 50% bonus “supertax” was deemed to be a bit of a failure (the banks just grossed up bonuses to compensate for the levy), Senators Barbara Boxer and James Webb have proposed a similar measure, and one wonders how it might fend off the sort of gaming that plagued the UK effort.
The one-time tax would be limited to bonuses of more than $400,000 at firm that received more than $5 billion in TARP funds. Bloomberg notes:
The bill would affect 13 firms and could raise $10 billion to help cut the federal deficit, Boxer said.
“It’s outrageous that many of these companies are doling out millions of dollars in bonuses while the rest of America feels the pain of reckless decisions,” said Boxer.