Leonard E. Burman (Syracuse University, Maxwell School), Bank Bonus Taxes are a Bad Idea:

The UK recently instituted a 50% tax on bankers’ bonuses and France is reportedly about to follow suit. German chancellor, Angela Merkel, is said to like the idea, but would prefer to institute a tax on financial transactions. Even economist Paul Krugman said that, at first blush, the bonus tax “looks entirely reasonable.” Sure, it might drive the best and the brightest out of the finance business, but that would be a good thing. If there were an effective way to do it, I’d love to exact revenge on the financial charlatans who wrecked our economy and extorted hundreds of billions in ransom from the feds to keep the financial sector from complete meltdown. The only problem is that the tax ideas being floated would likely do more harm than good.