Cyprus to apply emergency tax as part of (Update: Now cancelled)

[Mark R]

Citizens of Cyprus are in for a bit of a shock. As part of a bailout deal for their near bust government.

What is interesting is that the people of Cyprus are expected to pay for it. Instead of "austerity" or other similar plans, the government is to enact an emergency tax, effective immediately: the emergency tax will be 6.75% of the contents of any bank-account showing a credit balance, or 10% of any bank account containing more than €100k.

Banks have been instructed to ensure that the money is paid to the government before the start of business next week. Wire transfers/online banking transfers have been blocked until after banks reopen and very low withdrawal limits have been placed on ATMs.

Link

Well, they're not even trying to hide it any more. The elites in power are not going to cut costs, they're just going to take anything that they can.

I wonder how long it will be before we see open rioting on the streets in Cyprus.

Update on 19 March: Politicians have voted not to apply the tax.

 

[monovillage]

This cracked me up, they just went in and stole ........errr taxed people by how much they had in the bank and stole....errr taxed them a percentage. Didn't even buy them dinner or give them time to lube up.

 

[Attic]

Yikes.

Not surprisingly, CNN had incomplete (Read: horribly shoddy) reporting of this.

http://money.cnn.com/2013/03/16/news/economy/europe-cyprus-bailout/index.html?iid=HP_LN

 

[DCal430]

Ridiculous, this destroys any credible Bank Deposit guarantee in EURO zone. Expect major bank runs in Cyprus on Monday

 

[DCal430]

Also of note, Bond holders will not lose any money, only those with deposits will. So the rich bond holders in Germany and such will get paid in full, but the common folk with bank deposits will have their money seized to pay the rich bond holders. Sickening.

 

[nehalem256]

Wow.

Once again people who responsibly save their money are screwed.

 

[yllus]

That is insane. What a terrible idea - nobody will place money in a Cypriot bank for years to come because of this.

 

[monovillage]

Ridiculous, this destroys any credible Bank Deposit guarantee in EURO zone. Expect major bank runs in Cyprus on Monday

I would expect major bank runs in every country after seeing this.

 

[Screech]

Wow, that sounds like a remarkably bad idea. A bank isn't going to be doing a lot of business if nobody wants to keep their money in said bank anymore....

 

[nextJin]

What prevents them from moving to multiple accounts?

 

[nehalem256]

What prevents them from moving to multiple accounts?

They block transfers until they can "tax" the money out of the accounts.

 

[nextJin]

They block transfers until they can "tax" the money out of the accounts.

oh thats nice

 

[Zstream]

This is crazy! Expect an armed revolution if this ever happened in the states.

 

[unokitty]

Reneging On Government Deposit Insurance

Anyone else not feeling warm and fuzzy?

Uno

 

[Rebel44]

In recent past, Cyprus advertised itself as tax heaven and its banks helped lot of companies and individuals in other EU countries to cheat taxes and launder illegal money.

They got what they deserve.

 

[Albatross]

Highway robbery.

 

[DCal430]

In recent past, Cyprus advertised itself as tax heaven and its banks helped lot of companies and individuals in other EU countries to cheat taxes and launder illegal money.

They got what they deserve.

The vast majority of the money isn't from people who are cheating or laundering money. The vast majority of it belongs to ordinary citizens of Cyprus.

There are also many other Countries in Europe who are no better, so no thy didn't get what they deserved.

 

[WackyDan]

When you run out of other people's money... you take more of other people's money?

This is pretty bad and reminds me of when Argentina stole all the retirement accounts/pensions.

Bad sign of things to come...

 

[nehalem256]

When you run out of other people's money... you take more of other people's money?

This is pretty bad and reminds me of when Argentina stole all the retirement accounts/pensions.

Bad sign of things to come...

Exactly. This is why the right to bear arms is so important. Imagine if they tried this in the United States. If I was a congressman I would fear for my life.

 

[Jaskalas]

Property seized to bankroll corrupt government largess.

Their economy is f'ed after this. Who is going to feel confident, who is going to invest? Taking the money is a slash and burn tactic.

 

[fskimospy]

Property seized to bankroll corrupt government largess.

Their economy is f'ed after this. Who is going to feel confident, who is going to invest? Taking the money is a slash and burn tactic.

Actually it is property seized to bankroll corrupt banking system largesse.

Still though, this seems like an exceptionally horrible idea. Want to start a euro wide bank run? Make people think you can just grab cash out of their bank accounts any time.

 

[Doppel]

It is theft. Gov has delayed vote until Monday afternoon. Banks closed Monday anyway. A government doin this kind of thing should be expelled. What an awful precedent. I cannot see this ever happening in the US or any other non-shit country but if I were in Greece for example I would pull my cash out.

 

[Screech]

It is theft. Gov has delayed vote until Monday afternoon. Banks closed Monday anyway. A government doin this kind of thing should be expelled. What an awful precedent. I cannot see this ever happening in the US or any other non-shit country but if I were in Greece for example I would pull my cash out.

10000x this, which is why I find this stuff so incredibly stupid......its like someone is actually trying to make a run on banks in the eurozone.

 

[NoStateofMind]

Taxes = slavery IMO, but opinions matter not without action. These poor people getting railroaded by their representatives is very telling. They are out for the survival of the system. Something like this in the States and you will see rebellion.

 

[NoStateofMind]

10000x this, which is why I find this stuff so incredibly stupid......its like someone is actually trying to make a run on banks in the eurozone.

That wouldn't surprise me.