So following the style
of decision I think Vetinari would make - link banker/bank taxes to unemployment.
If I can link to an actual factual document here: Bankers and their Bonuses
Effect on bankers pay: "little more than a blip".http://cep.lse.ac.uk/pubs/download/occasional/op035.pdf
This one point is enough to make you consider that the reason for the banks refusing finance to good Small & Medium Enterprises (SMEs) is to keep their wages high, not for any other reason they might propagandise.
1. SMEs are crucial to economic growth
2. SMEs require finance to grow
3. SME growth will give a virtuous circle by encouraging big business confidence to spend their cash hoards!
Mervyn King - "big companies have decided to go around the banking system, to issue instruments themselves ... equity issues, corporate bond issues, are being used to avoid the higher cost of bank lending. That is not something which is open to smaller companies" - August 11, 2010http://www.bankofengland.co.uk/publicat ... 110810.pdf
So this idea is all about "forcing" the banks to finance SMEs at an honest rate. Linking their taxes to unemployment rate means the only way they can reduce their top-rate of income tax, or the bank-levy for institutions, is to invest in SMEs for growth.The Bankers Will Just Avoid This New Tax
This implies that bankers & banks pay zero percent tax just now, and we know they don't, so ...This would be Really Difficult To Implement
Alistair Darling was told by the Treasury civil servants in the pockets of the banks, "Fear! Uncertainty! Doubt! minister, we can't put a 50% tax on banker's bonus payments! There are all sort of legal difficulties; Minister!"
Darling said, "Get it done or your sacked."
It happened within a week.