According to a report in the Independent newspaper, the massive rise in bonuses suggest that instead of reducing bonuses, the financial sector held back payment until new lower higher income tax rate came into force. This could have cost the Treasury tens of millions of pounds in lost tax revenue.
The tax rate for earnings of more than £150,000 was reduced from 50p to 45p.
The findings have caused outrage among Labour politicians, who have accused Cameron of giving an ‘under the table’ tax cut to high earners.
During exchanges in the House of Commons, Ed Miliband, the Labour leader, said: “The fact is that bonuses in the City were up by 64 per cent in April – and why? Because the Prime Minister has cut the top rate of income tax from 50p to 45p. People took their bonuses in April and were given a massive tax cut as a result.”
Miliband continued “For all his tough talk, the reality is the Prime Minister is dragging his feet on banking reform. Business lending is still falling, bonuses are rising and, while ordinary families are suffering, he is giving a massive tax cut to the bankers.”
Despite Cameron’s public announcements that he is getting tough on banker bonuses and tax dodgers, it is clear e is doing nothing of the sort.
So far he has made an agreement with British territories that will have no effect on stopping, or significantly reducing tax dodging by using offshore banking whatsoever. That is it. Anything else has only served to improve the financial situation of the biggest abusers of the financial system.
The TUC’s general secretary, Frances O’Grady, told the Independent “For all the talk about cracking down on tax dodging, it is clear that George Osborne was in league with top bankers to ensure they could get round the 50p tax rate by changing the date when their bonus was paid. If there is to be no effective cap on bonuses, then we should at least ensure the public purse benefits to the full by effectively taxing every bonus and salary hike enjoyed by super-rich bankers.”
As with everything that comes from the mouths of Cameron and his cronies, lies and more lies are fed to the public through the mainstream media and are all that can be expected. Lies and corruption.