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Singer Bragg 'threatens' to stop paying taxes over bank bonuses

14:56 18Jan10 Singer Bragg to stop paying taxes over bank bonuses

LONDON, Jan 18 - British singer Billy Bragg has threatened to stop paying taxes, and called on others to follow suit, unless the government acts to limit bonuses paid by the Royal Bank of Scotland (RBS).

The 52-year-old singer, well known for his left-wing views and political activism, aims to tap public anger over "fat cat" bonuses at U.S. and British banks rescued with taxpayers' money during the financial crisis.

The huge bailouts have left the British government holding 84 percent of Royal Bank of Scotland Group Plc and 43 percent of Lloyds Banking Group.

"I understand that the Treasury had little choice but to use taxpayers' money to safeguard savings and stabilise and restore confidence in the financial system," Bragg wrote on his page on the Facebook social networking site.

"What I don't understand is why, now that we taxpayers are the majority shareholders of these banks, we seem totally powerless to curb their excessive bonus culture?"

He quoted reports estimating RBS will pay its investment bankers around 1.5 billion pounds ($2.5 billion) in bonuses next month.

At the same time, he added, Britain's main political parties are warning voters that national debt will mean tough cuts in public spending after the next general election.

"I believe that the government have their priorities wrong.
"I have written to the Chancellor of the Exchequer (finance minister),
Alistair Darling, to inform him that I am no longer prepared to fund the excessive bonuses of RBS investment bankers. Unless he acts to limit them to 25,000 pounds, I shall be withholding my tax payment on 31st January."

In his Facebook campaign titled "NoBonus4RBS" he invited other British tax payers to do the same to exert pressure on the government to curb bonuses.

RBS has been forced to agree to slash payouts and hand the state a veto on its 2009 bonus pool, but the government has also said that going too far to restrict pay could dent the bank's ability to compete.

When asked about Bragg's initiative, a Treasury spokesman said: "We can reassure people there will not be a significant amount of taxpayers' cash going to bonuses at RBS."
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
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Comments

  • kennyboy66_2
    kennyboy66_2 Posts: 2,598 Forumite
    14:56 18Jan10 Singer Bragg to stop paying taxes over bank bonuses

    LONDON, Jan 18 - British singer Billy Bragg has threatened to stop paying taxes, and called on others to follow suit, unless the government acts to limit bonuses paid by the Royal Bank of Scotland (RBS).

    The 52-year-old singer, well known for his left-wing views and political activism, aims to tap public anger over "fat cat" bonuses at U.S. and British banks rescued with taxpayers' money during the financial crisis.

    The huge bailouts have left the British government holding 84 percent of Royal Bank of Scotland Group Plc and 43 percent of Lloyds Banking Group.

    "I understand that the Treasury had little choice but to use taxpayers' money to safeguard savings and stabilise and restore confidence in the financial system," Bragg wrote on his page on the Facebook social networking site.

    "What I don't understand is why, now that we taxpayers are the majority shareholders of these banks, we seem totally powerless to curb their excessive bonus culture?"

    He quoted reports estimating RBS will pay its investment bankers around 1.5 billion pounds ($2.5 billion) in bonuses next month.

    At the same time, he added, Britain's main political parties are warning voters that national debt will mean tough cuts in public spending after the next general election.

    "I believe that the government have their priorities wrong.
    "I have written to the Chancellor of the Exchequer (finance minister),
    Alistair Darling, to inform him that I am no longer prepared to fund the excessive bonuses of RBS investment bankers. Unless he acts to limit them to 25,000 pounds, I shall be withholding my tax payment on 31st January."

    In his Facebook campaign titled "NoBonus4RBS" he invited other British tax payers to do the same to exert pressure on the government to curb bonuses.

    RBS has been forced to agree to slash payouts and hand the state a veto on its 2009 bonus pool, but the government has also said that going too far to restrict pay could dent the bank's ability to compete.

    When asked about Bragg's initiative, a Treasury spokesman said: "We can reassure people there will not be a significant amount of taxpayers' cash going to bonuses at RBS."

    Still "waiting for the great leap forwards" is our Billy.

    In the end the pragmatic response is, do you wants RBS to 'earn' £6bn profits and pay £1.5bn in bonuses, or would you rather they closed the investment bank side and made £2bn profits and pay no bonuses. Anything else smacks of cutting nose to spite face.

    Still, one or our greatest songwriters ever.
    US housing: it's not a bubble

    Moneyweek, December 2005
  • peterg1965
    peterg1965 Posts: 2,164 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Billy Bragg = 1980's socialist throwback. Most people will not even know who is was/is!
  • peterg1965 wrote: »
    Billy Bragg = 1980's socialist throwback. Most people will not even know who is was/is!

    Indeed, but he showed astonishing prescience when he wrote this in 1991 on his album 'Don't Try This At Home'. From the track 'North Sea Bubble'.

    We're living in a North Sea Bubble
    We're trying to spend our way out of trouble

    You keep buying these things but you don't need them
    But as long as you're comfortable it feels like freedom

    My American friends don't know what to do
    But they'll wait a long time for a Beverley Hills coup

    War! What is it good for
    It's good for business
  • FATBALLZ
    FATBALLZ Posts: 5,146 Forumite
    Celebrities should keep out of politics. Why is it that theyre all lefties anyway (or pretend to be, like U2's 'more taxpayers money should go to africa but as for me i'm shifting my company off to a tax haven so that i don't have to contribute' Bono)?
  • Mr_Matey
    Mr_Matey Posts: 608 Forumite
    In other news, Joe the toilet cleaner has also threatened to stop paying taxes over RBS bonuses.

    "I'm sick of this sh*t", Joe said, "The only bonus I get is when the city boys in my office have a big company lunch, and even then it's not a pleasant one. Frankly I'm tired of them and the government flushing it all away and leaving me to clean up the mess."

    Joe has also started a facebook group to try and get noticed.
  • ILW
    ILW Posts: 18,333 Forumite
    Wonder if Mr Bragg has a record/book coming out soon? No such thing as bad publicity.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    I'm gonna start downloading illegally in protest at the amount of money record company execs/bands/pop stars make...
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    edited 18 January 2010 at 5:05PM
    lemonjelly wrote: »
    I'm gonna start downloading illegally in protest at the amount of money record company execs/bands/pop stars make...

    You mean you've just started?
    LONDON, Jan 18 - British singer Billy Bragg has threatened to stop paying taxes, and called on others to follow suit, unless the government acts to limit bonuses paid by the Royal Bank of Scotland (RBS).
    ."

    Smart move. Of course, the UK government would never just declare him bankrupt, and take his house and recording income, would it?
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Twenty-year-old who's not really sure what he did. Heard of him, but I doubt I could name any of his songs.

    Anyway, I hope that not too many less well off people follow his lead; he can afford the fines when HMRC catch up with him, probably peanuts to him, a lot of people can't.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Masomnia wrote: »
    Twenty-year-old who's not really sure what he did. Heard of him, but I doubt I could name any of his songs.

    Anyway, I hope that not too many less well off people follow his lead; he can afford the fines when HMRC catch up with him, probably peanuts to him, a lot of people can't.


    http://www.youtube.com/watch?v=xjUA3RU4B8E

    http://www.youtube.com/watch?v=mgwU4zCEJtY
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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