If Clegg’s mansion taxes, capital gains taxes and pension fiddling scare City workers, how about this? The IMF’s two pronged “financial stability contribution tax” and “financial activities tax” are winning support…

Politicians and joe public are loving the sound of it. The “financial stability contribution” will levy a small charge on banks’ balance sheets, and a “financial activities tax”, will tax excess profits, including bonuses.

The IMF report recommended that the proceeds of the taxes should go towards a financial crises fund, and towards general government revenues. (For the UK read: filling the black hole of debt and paying for future administrations’ pet projects – how much of your road tax is spent on roads?).

Chancellor Alistair Darling said:

“These are important proposals and we should welcome them. The recognition that banks should make a contribution to the society in which they operate is right.”

Inserting the proviso:

“Any agreement has to be international.”

Although the Conservatives and the Liberals have already concocted proposals for bank taxes, all major parties are likely to support the IMF plan according to the Telegraph.

Anyone not in favour?

The BBC’s Robert Peston hit the (somewhat obvious) nail on the head:

“The proposals are likely to horrify banks, especially the proposed tax on pay.”