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BRUSSELS (Dow Jones)--France will tax bankers' bonuses in 2010, following a planned levy in the U.K., two French government officials said Friday.
French President Nicolas Sarkozy and U.K. Prime Minister Gordon Brown on Thursday published an article in The Wall Street Journal, calling a one-time tax on bankers' bonuses a priority.
"Among these proposals, we agree that a one-off tax in relation to bonuses should be considered a priority, due to the fact that bonuses for 2009 have arisen partly because of government support for the banking system," Sarkozy and Brown wrote.
The U.K. on Wednesday said it will tax bonuses over GBP25,000 pounds at a 50% rate. The French government officials didn't provide details about the rate of tax or any thresholds the government will apply to bankers' bonuses. They said they expect the U.K. and French taxes will encourage other countries to follow suit.
German Chancellor Angela Merkel on Thursday called this bonus tax a "charming idea," but has not suggested legislation in this area.
French President Nicolas Sarkozy and U.K. Prime Minister Gordon Brown on Thursday published an article in The Wall Street Journal, calling a one-time tax on bankers' bonuses a priority.
"Among these proposals, we agree that a one-off tax in relation to bonuses should be considered a priority, due to the fact that bonuses for 2009 have arisen partly because of government support for the banking system," Sarkozy and Brown wrote.
The U.K. on Wednesday said it will tax bonuses over GBP25,000 pounds at a 50% rate. The French government officials didn't provide details about the rate of tax or any thresholds the government will apply to bankers' bonuses. They said they expect the U.K. and French taxes will encourage other countries to follow suit.
German Chancellor Angela Merkel on Thursday called this bonus tax a "charming idea," but has not suggested legislation in this area.
