Numbers of people applying for jobs in Swiss financial sector last year actually fell, despite warnings by Boris Johnson that new taxes would drive them away
British bankers appear to be staying put in Canary Wharf, despite warnings to the contrary. Photograph: Andy Rain/EPA
Fears of a mass exodus by London's financiers to the more favourable tax climate of Switzerland appear to have been exaggerated: fewer Britons applied for permits to work in the Swiss financial services sector last year than in 2008.
Research by Channel 4 News shows that, despite warnings by Boris Johnson, the mayor of London, that 9,000 high-flying City workers would decamp to escape the windfall levy on bonuses and the 50p income tax rate, just 1,079 British citizens joined the financial sector in the Alpine state last year – and about two-thirds of those were applying for IT or other back-office jobs. That represented a 7% decline on the number of Brits applying for a carte de séjour – work permit – in the financial services sector in 2008.
Alistair Darling's announcement of the bonus tax in December's pre-budget report provoked growls of irritation in the City, with many senior bankers threatening to depart for foreign shores.
Broker Tullett Prebon and hedge fund Bluecrest have announced plans to allow some of their City staff to move overseas, but the Swiss data suggests that so far, departures from London have been a trickle rather than a flood.
And since President Obama announced a $90bn (£58bn) levy on Wall Street and new rules to limit the size of banks, it has become increasingly clear that Britain is far from alone in seeking to crack down on financiers.
Gordon Brown will meet fellow European centre-left leaders in London tomorrow to discuss how to ensure that banks and other financial institutions "make a proper contribution to society".
The prime minister stressed his determination to spearhead a "big reform" of the global economic system in an interview with the Labour magazine Tribune, before the meeting with fellow leaders, including the prime minister of Spain, José Luis Rodríguez Zapatero.
"If you are in a global economy, a national supervisory regime cannot be enough, so you've got to look at the rules under which financial institutions operate globally. One of those rules is that the banks… make a proper contribution to society," said Brown.
The prime minister had initially favoured a tax on financial transactions – dubbed a "Robin Hood tax" by campaigners; but he has cooled on the idea in recent weeks. Treasury officials have instead been working with their American counterparts on a worldwide version of Obama's $90bn "insurance levy", and the PM has suggested the principles could be agreed by G20 countries this summer.
He told Tribune: "Lots of banks have been able to choose to avoid tax, to move to tax and regulatory havens, and now that we are starting to close that down, it is possible then to have a global financial levy which global financial institutions would pay as their contribution towards the risks that they potentially impose on society but also on the earnings that they have."
Such a charge would probably be calculated according to banks' size, instead of being imposed on every City trade.
Japan reignited the debate about the rival proposals this week by adding its voice to the argument for a transaction tax. Naoki Minezaki, Japan's vice-minister for finance, said: "We're seeing speculative funds flowing carelessly around the world – one day in stocks and real estate, other times in oil and grains – and this is destroying the lives of ordinary people." He said a tax on financial transactions should be imposed "as part of international solidarity". France and Germany – which are keen to rein in "Anglo-Saxon capitalism" – have also made clear that they prefer the idea of a transaction tax.
A spokesman for the Robin Hood Tax campaign, which was launched earlier this month, said: "Japan's support for a tax on banks' financial transactions shows growing international backing for measures that go beyond merely asking banks to repay bailouts." A Robin Hood tax is the only way to raise money to tackle the wider social damage done by the economic crisis and raise money to tackle long-term problems such as climate change."
The TUC, which is part of the Robin Hood Tax coalition, argued earlier this week that a global 0.005% tax on currency transactions and derivatives could be implemented immediately, and would raise up to £100bn. Campaigners have suggested that some of the proceeds would be reserved by the countries, such as the UK, in which transactions took place, and the rest could go into an international pot that could be used to tackle international problems such as poverty or climate change.
Remember all those high finance ass kissers who said that too much regulation and extra taxes would make the "wealth producers" leave? Well, it turned out to be a load of shit.
"This statement, in its utterly clueless hubristic stupidity, cannot be improved upon. I merely quote it in admiration of its perfection." - Garibaldi
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
Actually, the reason less people are heading for Switzerland is that 22% of the country's entire economy looks ready to implode - UBS's little shitstorm last year and Obama taking care of it effectively meant that Swiss confidential banking is a thing of the past - people just don't realize it yet.
(And Financial services are 25% of Switzerlands economy. That's right, non confidential banking services are just 3% of the Swiss economy. Quite minute).
Photography Genius is always allowed some leeway, once the hammer has been pried from its hands and the blood has been cleaned up.
To improve is to change; to be perfect is to change often.
The bullshit about "wealth producers" fleeing is repeatedly shown to be wrong; I can't think of a historical example where tax raises actually caused a massive capital outflow from a nation - can anyone provide one?
Lì ci sono chiese, macerie, moschee e questure, lì frontiere, prezzi inaccessibile e freddure
Lì paludi, minacce, cecchini coi fucili, documenti, file notturne e clandestini
Qui incontri, lotte, passi sincronizzati, colori, capannelli non autorizzati,
Uccelli migratori, reti, informazioni, piazze di Tutti i like pazze di passioni...
...La tranquillità è importante ma la libertà è tutto!
It sounds like some kind of bullshit the wealth producers themselves, or their cronies, would say to dissuade tax increases or something on part of the government.
"DO YOU WORSHIP HOMOSEXUALS?" - Curtis Saxton (source) shroom is a lovely boy and i wont hear a bad word against him - LUSY-CHAN! Shit! Man, I didn't think of that! It took Shroom to properly interpret the screams of dying people - PeZook Shroom, I read out the stuff you write about us. You are an endless supply of morale down here. :p - an OWS street medic Pink Sugar Heart Attack!
I hear that increase of taxes will mean a mass exodus of the wealthy. Where are they going to go? As a English speaker, they would probably want to stay in English speaking countries. So move to Britain or Canada? Higher taxes there. Move to India, South Africa, Guyana? I don't think so...
Brotherhood of the Monkey @( !.! )@ To give anything less than your best is to sacrifice the gift. ~Steve Prefontaine Aoccdrnig to rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer are in the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.
Shroom Man 777 wrote:It sounds like some kind of bullshit the wealth producers themselves, or their cronies, would say to dissuade tax increases or something on part of the government.
It always has been exactly that. What is amazing is there are so many ass kissers in the general public who parrot such bullshit.
"This statement, in its utterly clueless hubristic stupidity, cannot be improved upon. I merely quote it in admiration of its perfection." - Garibaldi
"Problem is, while the Germans have had many mea culpas and quite painfully dealt with their history, the South is still hellbent on painting themselves as the real victims. It gives them a special place in the history of assholes" - Covenant
"Over three million died fighting for the emperor, but when the war was over he pretended it was not his responsibility. What kind of man does that?'' - Saburo Sakai
"
- PeZook