Come to think of it, Goldman should be quite pleased. We can set up a market for trading badness credits. Goldman can just use their existing infrastructure for trading carbon credits - aka "the other badness credit."QuoteGoldman Sachs has recently bought pieces of two carbon-offset companies, in the latest sign of investment banks’ interest in the area.On Monday E+Co, a company focused on bringing clean power to developing countries, announced that Goldman had purchased a majority of its carbon-offsets portfolio. In late October, Goldman took a minority stake in BlueSource, which is more focused on the tiny offsets market in the United States, and plans to market BlueSource offsets to clients.Last December, Goldman also invested in APX, a California company that registers carbon offsets.“These two deals show Goldman Sachs’ interest in the global carbon market and our commitment to assisting our clients who participate in these markets,” said Michael DuVally, a bank spokesman, in an e-mail message.Carbon offsets are projects that reduce greenhouse gas emissions — thus potentially counterbalancing a rise in emissions elsewhere. Planting trees are the most obvious offset; but other examples include capturing methane (a potent greenhouse gas) from a coal mine, or undertaking a qualified energy-efficiency project.Maybe Goldman Sachs can even plant some trees to try to make up for their badness.I guess it is true what they say: What goes around comes around, suckers!

Correct: as I read it, it is indeed the employer who is liable but as one former boss once told me, regardless of contracts, s&^t tends to flow in one direction only.One of the greatest ironies of bonus culture is the payment of bonus in equity which it is forbidden to hedge. To reward responsible risk managed trading with payment involving unhedgeable risk.The tax free bonus-as-pension is a question of personal discount rate. The equivalent question involving equity has the market price of (wrong way) risk...QuoteOriginally posted by: DominicConnorTW, that's a good Brainteaser...Part of the issue is that the employer looks like being liable for the tax, not the employee.This matters a lot because many contracts for bonuses are of the form "X% of the profit before tax", or alternatively, there will be agreements that the pool for a group is X% before tax.In fact it is not common for bonus terms to include the tax issues of the employer, that may change of course, but too late for this bonus round.GS is one of the more complex cases because of it's legacy of being a partnership, but my call is that the firm is going to take a hit either way.

It's prudent for GS to plan the move. They might have to cough up some money soon: Responding to Goldman Sachs

At any decent size bank with international ops, my bet is the uk bonus tax is gunna be absorbed by all the other branches...let them share in the pain

Does anyone have any historical examples of a one-time tax in the UK or anywhere else? Isn't that like trying to eat one potato chip?

QuoteOriginally posted by: farmerDoes anyone have any historical examples of a one-time tax in the UK or anywhere else? Isn't that like trying to eat one potato chip?I tried, but didn't find any example for it. Really great counter example though:The "Schaumweinsteuer" (sparkling wine tax) was introduced as a short term measure to finance the imperial navy... of the German Empire in 1902. It still exists and costs the German tax payer about 450mn €/year. That's some short term...

QuoteOriginally posted by: farmerDoes anyone have any historical examples of a one-time tax in the UK or anywhere else? Isn't that like trying to eat one potato chip?Income Tax? Created to pay for the Napolonic War as a temporary measure.Out of interest various significant events came from the Napolonic War - the issuance of a huge amount of debt (ridiculous numbers in today's terms - hundreds of billion GBP) - which you can still invest in BTW. The adopting of the gold standard, income tax, and allowing gold to free float rather than being at a pegged amount per oz.