Cyprus could tax people’s bank accounts for EU bailout
The mainstream media always mocks conservatives’ caution about what big government spending can lead to. The doubters finally got to see what could result with too much progressive government.
The European Union’s demands have pushed the Cyprus government to consider forcing Cypriot bank depositors to pay up to 10% of their bank deposits as a tax in exchange for a $13B bailout from Europe.
Did the progressive loving Cyprus people gleefully accept their fair share? No, they swarmed the banks, forcing the government to shut them down until Thursday until officials figure out what to do.
This is what can happen when the government continues to spend money it doesn’t have; it contemplates taking even more money from its citizens with yet another tax – this time up to a maximum of 10% of their bank accounts!
In true progressive class discrimination, the Cyprus government considered small depositors in Cypriot banks should take less of a hit than bigger depositors with the one-time levy.
Hundreds of demonstrators warned that the raid on their bank accounts should serve as a warning for other weakened European economies. One banner read, “EU. Who is next? Spain or Italy?
Analysts said that Cyprus’s tiny economy, which accounts for just 0.2% of the euro zone’s gross domestic product, isn’t big enough to reignite Europe’s financial crisis.
But the confiscation of a portion of citizen’s bank accounts is real and who knows what will happen as the crisis worsens?
In a bid to calm fears, the country’s central bank officials Monday ordered banks to restock cash machines, while both European and Cypriot central bank officials have said there were contingency measures in place to deal with any large outflows in deposits (run on the banks when they reopen on Thursday.)
Cyprus has postponed the debate of taxing the people’s bank accounts for the time being, but it does show the lengths that these addicted governments will go to continue to remain in power, while still considering a lower tax on the savings accounts at possibly 3%.
Some have said progressive governments think of your earnings as their money, until they let you keep it. In this particular case, the government wants the earnings even after they let the people keep it.