Chancellor of the Exchequer Alistair Darling will be levying a tax on excessive bonuses:

Alistair Darling will try to force a “permanent culture shift” in the City as he announces a one-off punitive super-tax of more than 50% on the bonuses of tens of thousands of bankers as the centrepiece of the pre-budget report.

The chancellor intends his targeted, one-off levy as a clear message that the City has to “start living in the real world” as the financial sector prepares to lavish hefty payouts on its staff.

The new super-tax rate will be aimed at any bonus above a fixed rate, rather than the basic salary of the employee. It is intended to hit many thousands of bankers, but low-paid staff in bank branches will be exempt.

The tax will be set higher than the 50% income tax rate coming in from April for those earning more than £150,000 a year, sources indicate.

Needless to say, the bankers don’t like this, calling the measure, “populist, political and penal.”

I think that they meant the statement as a condemnation, but I found it to be a complement, though I do like the alliteration.

The details are not clear, but I would suggest something on the order of 93% of anything in excess of £400,000.