What are they doing about it? Letting people know they will walk, that's what!
Those of us in London IB just got shafted by way of a new supertax on banking bonuses, announced yesterday and effective through April 5 2010 (just to nail this
bonus cycle). Banks (including UK subs of internationals) will pay a 50% tax on the bonus pool *before* the bonus is even paid out; individuals are then subject to the normal 41% or 51% tax (depending on tax bracket). So effectively we'll receive 25% of our pool. It's intended as a bonus payment deterrent rather than a revenue generator, and is just Labour pandering to voters ahead of the election. Unfortunately, nobody wanted to stand up and defend bankers' bonuses,
so it's gone through.
This is major news here; everybody (even my group head) is talking about either moving to hedge funds, boutiques or buy-side (which aren't subject to the supertax), or relocating to Zurich, NY or HK. Even if it's only a one-year tax as currently drafted, people have lost faith in the UK political leadership. The long-term future of the UK is at risk and nobody seems to give a shit as they're too busy trying to punish bankers for our supposed misdeeds.