As Congress debates whether to raise taxes for the wealthiest Americans beginning next year, financial firms are discussing whether to move up their bonus payouts from next year to this month.  At risk are the handsome bonuses that have become a familiar part of the compensation culture on Wall Street.  If Congress doesn't extend the Bush-era tax cuts for the highest income levels, a typical worker who earns a $1 million bonus would pay $40K-$50K more in taxes next year than this year, depending on base salary.

Goldman Sachs reportedly is one of the companies discussing how to time bonus season.  Pay consultants who work with major Wall Street companies say that just about every other large bank has also considered such a move in recent weeks.  This year the tax debate has imposed a new wrinkle or two - e.g., an extension of federal unemployment benefits reportedly has been conditioned on extending the Bush tax cuts, as well. 

In addition, executives at 2 large banks said their companies tentatively decided not to speed payouts - that is, unless Goldman did.  In that case, they said, they'd consider paying early as a competitive measure, and not upset their workers.

For the complete story by NYTimes columnists Louise Story and Gretchen Morgenson, click onto:  [NYTimes, "Tax Fear May Move ...", 12/6]