U.S. probably will avoid matching U.K. 50% bonus tax

Published December 9, 2009 5:00am ET



Dec. 9 (Bloomberg) — U.S. lawmakers already wary of expanding the government’s role in running financial companies probably will avoid matching the U.K.’s tax on banker bonuses.

“We don’t think it is at all likely that Treasury-IRS would impose a 50 percent tax on banker bonuses,” said David Schmidt, a senior consultant for New York-based compensation firm James F. Reda & Associates. “This pay cut would likely cause an exodus of talent.”

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