Reuters: banks moving overseas would not cost the government much tax

A special report from Reuters, not normally exactly a hotbed of anti-capitalism propoganda, brings some provocative research findings about Britain’s financial sector:

Research by Reuters shows … the impact of any big bank departures on the economy, government finances and the City of London’s pre-eminence as a financial centre would be extremely limited…

In terms of taxes alone, Commercial Secretary to the Treasury and former banker James Sassoon told members of the House of Lords in February that large banking groups were expected to contribute around 20 billion pounds ($30 billion) in tax for the 2010-11 tax year.

Crucially, though, that figure includes indirect contributions such as income tax paid by bank employees. Of his 20 billion pound tax-take figure, Sassoon says the proportion contributed by pay-as-you-earn income tax and other social contributions is 80 percent, with corporation tax making up the remaining 20 percent.

You can read the full report here.