Anorak

Anorak | You can’t do nothing: both tax the banks more and get them lending more

You can’t do nothing: both tax the banks more and get them lending more

by | 10th, December 2012

ONE of these little problems this universe presents is that sometimes we want two mutually incompatible things. As in our current attitude to the banks. Firstly, we want the bastards to pay for the damage they did. But we also want them to lend much more money so we can get out of this damn recession.

Unfortunately, we can’t actually do both: the more we tax them the less capital they have which they can underwrite lending with :

The Government’s levy on banks may be sucking £15bn of credit for small and medium-sized businesses out of the UK economy, tax experts warned.

If the £2.5bn the tax is expected to bring to the Treasury’s coffers annually was left on banks’ balance sheets, that could open the door to additional lending, according to Ernst & Young’s financial services tax team.

Sadly, you just cannot have two mutually contradictory things at the same time.

If I had to choose between the two I’d say make them pay the tax. For it’s not really a tax: it’s an

You have already read 1 premium article for free today
Access immediately the premium content with Multipass

Or come back tomorrow



Posted: 10th, December 2012 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink