I Hope We’re Not On The Same Path As Cyprus [OPINION]
It's bad enough Governor Jindal wants to do away with state income taxes but boost sales taxes and we have more taxes being taken by the Federal government but I hope we're not going down the same road as Cyprus. The European Union is planning to tax deposits in Cyprus banks to secure approximately $13 billion in bailout money. This would be the first time this has happened in the European Union.
Nicos Anastasiade, President of Cyprus said that those with deposits of $25,900 or less would not be taxed on their deposits. Deposits of $25,900 and $129,290 would be taxed at rate of 6.75 percent while those with deposits over $129,290 would have to fork over 9.9 percent. The tax proposal in Cyprus is scary enough but it still falls about $385 million short of the amount needed to back the proposed bailout. If they can't find another way to secure the bailout the government of Cyprus may try to levy a 15.6 percent tax on major depositors including the Russian government. Image how that financial balloon will fly.
The Central Bank Governor of Cyprus Panicos Demetriades wants deposits of less than $129,290 to be unaffected by the proposed tax. $129,290 is the amount insured by the government of Cyprus. Demetriades said,
The credibility of, and trust in the banking sector depends on this.
Demetriades says he is afraid that at least 10 percent of all savings accounts will be closed. That fear brings up an interesting point. If this is a trend that begins in Cyprus, how long will it be until it spreads to the rest of the European Union and eventually to the United States?
We as working class Americans are being taxed more than ever but we're being asked to save for the future. Why should we save for the future if any earnings we might receive on our savings will be taxed to bailout our out-of-control spending in Washington? I don't want any more of my money going to Washington or in the long-run to Peking.