This week, the Government announced a surcharge on banks that paid large bonuses to its upper level employees. The bank would be taxed 50% of the bonus, while, of course, the recipient of the bonus would pay whatever income tax he/she usually pays. (Since bankers have good accountants, who knows the rate?)

A similar issue arises with the ongoing discontent over MP's expenses.They are being sent bills and asked to repay the expenses claimed.

The Government, supported by the opposition, more or less, is trying to curry favour with the electorate. My objections: you don't legislate taxes involving a single occupation or category of people. Bankers behaving badly is not new; that's what they did in the first place that caused a melt down of all kinds of things. Legislature should deal with with the initial problem: lack of bank regulation. Re-introduce the sorts of regulatory measures that were in place as a result of the Great Depression. Modify the new legislation to take account of the international nature of large banks. In terms of current banks, the Government, where it holds a stake in the bank, should refuse to allow the bonuses. Introduce a new tax band - say, 60% for income 250,000 pounds. Can bankers avoid paying the tax? That's what they pay accountants to manage, so probably. People who argue for a flat tax claim it's unfair to charge the wealthy a higher rate of tax. I suspect that the real opponents of a flat tax are the wealthy - they've got the accountants to take advantage of the tax laws. I don't think the flat tax is fairer, but I do think it might be easier to collect.

The Government does have one real stick to shake in dealing with banks: announce that those banks that do not observe regulations, whether off shore or not, will not have deposits guaranteed. Insure that anyone depositing in such banks signs a form acknowledging that they are aware that money lost will not be repaid, none, no amount, by the Government. Require pension funds to be placed in Government guaranteed banks.

Regarding MP's expenses: laws should not be retroactive. If the expense claims were made in accordance with the rules, they should stand. Change the rules; don't claw back money. I feel a great deal of sympathy for MPs. The average salary in the UK is around £20,000. An MPs basic salary is around £57,000. It sounds like a lot - but MPs that have to maintain two households, one in London, one in their constituency, do have actual expenses that come with the job. Unless this is adequately covered, anyone running for office will either have to be independently wealthy or have a spouse with a good job - as Cherie Blair had. Increase the salary, provide Government housing free of charge in London, or provide a reasonable way of claiming actual expenses.

I have no sympathy for bankers and their dodgy financial instruments. They really seem to think that their pursuit of short term profits is justifiable despite the ruin they've left behind. Pensions gutted, manufacturing destroyed, none of it matters. The Government, the tax payer, can take over their dodgy debts because they're too big too fail. Shame? They couldn't find the word in a dictionary, much less their evil little hearts.