What’s so shocking about Cyprus’ tax on bank accounts?

OK, Cyprus is going to slap a tax on bank accounts over $100,000.

The world is aghast. The end of financial systems as we know them is in the balance.

Say, what?

It’s not the first time that a government – think, U.S. government — has seized (oops, I meant “taxed”) private assets

Here are a couple of examples from close to home …

Remember the estate tax?

What exactly does it tax?

You guessed it: ASSETS.

And, just like the Cypriot plan, it has some social acceptance because it nails the big guys.

What about real estate taxes?

Again, a tax based on the value of assets.

Broadly supported – even though it’s applied to a broad base — because it seems to support good causes – like schools and first-responders.

What about personal property taxes?

Here in Virginia we still pay a state tax based on the value of cars owned,

That’s an asset based tax.

What about business inventory taxes?

The NCAAs were over-run with ads for every auto dealer’s inventory clearance sale intended to duck the state’s Vehicle Inventory Tax.

What about capital gains taxes?

Yeah, yeah, yeah … the tax is on “income” not assets.

Aren’t capital gains similar to accrued bank interest?

Hmmm.

And, I didn’t even open the eminent domain can of worms.

Bottom line: Look closer to home before pointing fingers at the whacky Cypriots.

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This entry was posted on March 26, 2013 at 6:49 am and is filed under Financial Crisis, Government & Politics, Tax burden, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Alexander S Says:
March 26, 2013 at 2:05 pm | Reply
Interestingly, Estate Duty or inheritance tax was abolished in Cyprus in January 2000.

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