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FDP speaks out against bank bonus tax

DPA/The Local · 28 Dec 2009, 14:18

Published: 28 Dec 2009 14:18 GMT+01:00

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"Taxing bonuses is populist. People like the idea, but it doesn't do any good," Homburger told reporters. "Instead, bank managers should own up to their responsibilities more often."

Both Great Britain and France have recently announced plans to introduce hefty taxes on manager's bonuses. A recent assessment by a German parliamentary body has found that the German constitution would allow a special tax of this kind.

A group of German financial institutions – including the biggest of all, Deutsche Bank - have recently agreed to self-regulatory measures to limit excessive bonuses. The pro-business FDP, the junior partner in Germany's coalition with the Christian Democrat Union, believes that this is sufficient guarantee against the lack of regulation that led to the financial crisis.

Homburger also declared that her party is against a tax on financial markets, an idea recently discussed in the European Union and supported by Chancellor Angela Merkel.

"That is not a solution to our problems," the FDP leader said. "It just affects the small investors again." Homburger also said that it was not up to the German government to create such a tax, but could only be developed by the international community.

Story continues below…

A recent EU summit in Brussels called on the International Monetary Fund to develop a global tax on financial trade. Merkel is in favour of an international stock market sales tax.

DPA/The Local (news@thelocal.de)

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Your comments about this article

16:18 December 28, 2009 by khassi
Right! taxing bonuses is populist and all the tax cuts FDP promised are not?! how else would they have won all that in the elections other than with their populist promises!
16:33 December 28, 2009 by Jibzy
Where do they want to take all their money? How much money can one human need? Do they sleep on beds made out of 100 euro bills? Do they use Euros to wipe their bottoms? They they burn euros to cook food?

God save this country from capitalism.
12:56 January 4, 2010 by astonysh
Profit motive - the organisation makes massive profits, the managers get a massive bonus, which is reasonably enough taxed by the state. If the organisation makes massive losses, the managers get a massive bonus which is paid for by the state, and then taxed by the state.
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