France to Follow British Lead in Levying Super Tax on Banks' Bonus
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After the British government announced levying 50 percent tax upon major banks' bonus, France is considering taking a similar measure against rich bankers, sources close to the Elysee said on Thursday.
The grand tax was a justified modification to encourage banks to conserve capital rather than payout after the financial crisis, the source said.
French authorities are mulling over a proper tax rate for bank employees with individual bonuses over 27,000 euros (about US$39,779) in 2009 before proposing the plan to parliament, the Le Echos daily also reported Thursday on its website.
Given that French bank employees have already shouldered a tax rate around 10 percent, which floats in line with the amount of bounty, local analyst estimated a bonus tax rate below 50 percent was likely to be taken.
Meanwhile, General Director of French Credit Agricole Georges Pauget expressed firmly his opposition, arguing there left no must for banks as they had reimbursed all governmental aiding loans for fight against the financial crisis.
Britain decided on Wednesday to tax all banks' individual bonus over 25,000 pounds (about US$40,700) at a rate of 50 percent, which relieved France's worry that its tight financial policy may hurt Paris as a financial center and scare away financial talents.
(Xinhua News Agency December 11, 2009)