How fair is that?

Yesterday I opened a letter from my bank informing me that they had recommenced raping my bank account—at the behest of the IRD. “Fair” enough, I suppose. It’s the IRD’s job to be fair. Why me? I guess I must “owe” them money because I don’t “PAYE” them anything.

Then I watched BBC World News. I was flabbergasted to learn that the Cypriot government is proposing to rape the bank accounts of literally everyone with an onshore bank account. Luckily, it’s a one-time tax, in which Cypriots stand to lose 7%-10% of their life savings in one hit, rather than the easy weekly payments I have to contend with. How fair is that?

Robert Tracinski says

The news broke over the weekend that in exchange for a bailout—or “bail-in,” whatever that means—of banks in Cyprus, bank deposits would be hit with a one-time “wealth tax” of 7% to 10%, depending on the size of the account. One expert sums up the reaction in the markets: “traders and investors are aghast.” So are depositors, who quickly emptied the island’s cash machines.

This is one of the biggest bank heists in history, and it is being carried out, not by the crew of charming rogues in your favorite caper flick, but by finance ministers. So it’s an inside job.

For an informed analysis of this latest episode in the Eurozone crisis, read Liberty Scott’s latest post. Scott notes that

The Cypriot Parliament, which must vote on this law, wont do so until Friday. Cypriot banks will remain closed until then. Will this trigger panic more widely? What would you do?

WWJD? (Trick question, Jesus never had a bank account.) To my mind, the proposal is so unthinkable that it’s unthinkable even to propose it. It’s goddamn communism! Let’s hope this proposal isn’t adopted but, even if it’s not, as Scott notes, “the damage is done to Cypriot banking.” Deposit funds into account with Bank of Cyprus? Yeah right.

Lindsay Mitchell has just the right quote

Any government big enough to give you everything you want is big enough to take away everything you have.

and Queens of the Stone Age have just the right song.

First it giveth
Then it taketh away

9 thoughts on “How fair is that?”

  1. Oh for f**ks sake: this is as constitutional and as acceptable as any other tax.

    What’s the different between 10% of your bank accounts vs 1% of your property value – council tax or rates? Once you accept the principles of proportional (as against truly flat) taxes and taxing wealth as well as income – then the only surprise is the rapidity of the impost – but that is also nothing new to those who remember the “exciting” budget night speeches of Muldoon or every other Labour government before him – we all knew booze cigs & petrol would go up overnight, the only question was how much.

    If this was a flat impost – say 10,000 euro from every account, or rather every person then that would certainly be fairer – You could say that if you had less than 10,000 then you only pay what you’ve got (but, say, forfeit the right to vote).

    The fact of the matter is that Cyprus (like NZ) is basically bankrupt. The creditors have caught up to Cyprus today – with NZ it’s only a matter of time.

  2. Oh for f**ks sake: this is as constitutional and as acceptable as any other tax.

    AngryTory, that’s “fair” comment.

    All taxes are unconstitutional and unacceptable. Give me Liberty, or give me Death!

  3. Reserve Bank scheme news knocks kiwi

    The New Zealand dollar lost ground against the greenback overnight, after investors were spooked by news of a Reserve Bank scheme which would mean a partial loss on all deposits if a bank fails. …

    The Reserve Bank’s Open Bank Resolution (OBR) plan, due to come into effect at the end of June, would mean a partial loss on all deposits if a bank failed in New Zealand, in order to fund the bank’s bailout. …

    A similar plan to bail out banks in Cyprus met strong opposition on news depositors would probably lose 10 per cent of their account balances in a one-off levy. Cypriot lawmakers rejected the plan overnight, with 36 votes against the bill, 19 abstentions and zero in favour.

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