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Cyprus May Tax Savings Over ($30K) By 12.5%

From Reuters:

Cyprus works on last-minute deal to soften bank levy

By Michele Kambas | March 17, 2013

NICOSIA(Reuters) – Cyprus was working on a last-minute proposal to soften the impact on smaller savers of a bank deposit levy after a parliamentary vote on the measure central to a bailout was postponed until Monday, a government source said.

We will later learn that this ‘softening’ actually entails taxing bank accounts over $130,000 dollars by 12.5% instead of 9.9%. In order to spare people with smaller bank accounts, who will only have to pay 3%.

In a radical departure from previous aid packages, euro zone finance ministers want Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, which has been financially crippled by its exposure to neighboring Greece.

The decision, announced on Saturday morning, stunned Cypriots and caused a run on cash points, most of which were depleted within hours. Electronic transfers were stopped.

So people can’t even withdraw their money to protect themselves from this thievery.

The originally proposed levies on deposits are 9.9 percent for those exceeding 100,000 euros [$129,660] and 6.7 percent on anything below that.

The Cypriot government on Sunday discussed with lenders the possibility of changing the levy to 3.0 percent for deposits below 100,000 euros, and to 12.5 percent for above that sum, a source close to the consultations told Reuters on condition of anonymity.

How ‘fair’ of them. This is class warfare in action. This is why social justice is actually the polar opposite of real justice.

The source said the discussions had the "blessing" of a troika of lenders from the European Commission, the IMF and the European Central Bank…

The move to take a percentage of deposits, which could raise almost 6 billion euros, must be ratified by parliament, where no party has a majority. If it fails to do so, President Nicos Anastasiades has warned, Cyprus’s two largest banks will collapse…

Making bank depositors bear some of the costs of a bailout had been taboo in Europe, but euro zone officials said it was the only way to salvage Cyprus’s financial sector.

Because there is no way to cut spending. Such as reducing the pensions to retired government ‘workers,’ who retired at 40.

European officials said it would not set a precedent…

No, of course not. Just like the way the US income tax was just a one shot thing because of the emergency of war.

Anastasiades, elected only three weeks ago, said savers will be compensated by shares in banks guaranteed by future natural gas revenues.

Cyprus is expecting the results of an offshore appraisal drilling this year to confirm the island is sitting on vast amounts of natural gas worth billions…

How hilarious. They will be "compensated" with shares gas deposits that might exist and might be exploited in ten or twenty years.

According to a draft copy of legislation, failing to pay up would be a criminal offence liable to three years in jail or a 50,000 euro fine [$64,610].

Those affected will include rich Russians with deposits in Cyprus and Europeans who have retired to the island, as well as Cypriots themselves.

"I’m furious," said Chris Drake, a former Middle East correspondent for the BBC who lives in Cyprus. "There were plenty of opportunities to take our money out; we didn’t because we were promised it was a red line which would not be crossed."

"I’ve lost several thousand," he told Reuters…

Meanwhile, Germany’s socialists and ‘Greens’ (which is redundant) want to take even more money.

Also, via Reuters:

German opposition wants big savers hit harder in Cyprus deal

By Noah Barkin | March 18, 2013

BERLIN (Reuters) – Leading German opposition figures criticized on Monday a deal struck by European governments to bail out Cyprus, saying smaller savers in the Mediterranean island’s banks should be spared a levy on their deposits and bigger savers hit harder.

Under a 10 billion euro rescue agreed in the early morning hours of Saturday in Brussels, savers with deposits below 100,000 euros would be hit with a 6.7 percent tax, while those above that threshold would take a 9.9 percent hit.

"Why don’t we take 15 percent from those with lots of money and completely exclude those with deposits under 25,000 euros from the levy?" Juergen Trittin, parliamentary leader for the Greens, told German television…

Sources told Reuters that Cypriot authorities were already considering changes that would cut the tax on smaller savers to 3.0 percent, while pushing up the one on big deposits to 12.5 percent…

Like Trittin, the deputy leader of the Social Democrats (SPD) in parliament Joachim Poss said it had been right to hit bank deposits in Cyprus but wrong to make small savers pay such a high price…

Why not just take 100% of the savings from these ‘rich people,’ and quit playing around?

after all, the last thing any socialist government wants is for its people to start working hard and saving money. That might make them less dependent.

This article was posted by Steve on Monday, March 18th, 2013. Comments are currently closed.

5 Responses to “Cyprus May Tax Savings Over ($30K) By 12.5%”

  1. Helena says:

    Holy Mackerel! Thank goodness this can’t possibly happen here.

  2. BannedbytheTaliban says:

    “which has been financially crippled by its exposure to neighboring Greece.”

    Exposure to Greece is just a likely cause as anything else I guess. In that way their downfall is muck like a sunburn or nuclear fallout. It most certainly wasn’t their social/economic/governmental structure known as socialism.

  3. Noyzmakr says:

    This will cross the pond quickly. The demoncrats love the eurotrash socialists and any idea they have.

    I have noticed the White House response was “No Comment….ask the Treasury”. Sounds like they’ve considered it. They’re already thinking of coming for your 401K’s. Savings and Checking can’t be far behind.

    I just saw a letter from Medicaid informing the recipient of the “Estate Recovery Program”. Basically saying that they were going to take her home and property if she cost them too much money when she gets sick and dies. I could barely console the poor woman. I told her to speak to an attorney but that she could “Gift Deed” the property to her children now with a “Life Estate” for herself but I’m sure the “Brainiac thieves” at HHS have thought of that. I couldn’t tell her whether it applied to her or not. It’s very complicated but it truly frightened this lady. I thought this was the reason for meidcaid and medicare…to protect the elderly from catastrophic finacial disater because of their health. Oh well……


    I removed all my money from my bank last year except for the minimum amount needed to cash checks ($250.00). When I do cash checks I except no bills higher than a $20. Sadly, I don’t think the $ will be worth the paper it’s printed on in two more years. I don’t see gold and silver as any panacea either.

    I’m thinking farmland is the place to be. Somewhere to grow food and graze cattle. Farms and farmland are selling for millions of $ in Iowa and Ohio already.

    It’s coming folks…..

    Only God can we trust.

  4. Petronius says:

    Confiscation of bank deposits. Confiscation of guns. No-warrant searches of bank records. Airport stop and frisk. Drones circling overhead. What’ll they think of next? Bringing back the dragonnades?

    This is how ordinary citizens become criminals overnight. Practically without lifting a finger. Amazing, isn’t it?

    Suddenly the stuffed mattress is back in style.

    Gold is up $15 today on the news from Cyprus.

    Bank stocks and other financials fell sharply today in Europe, the Pacific, and even in North America.

    The euro and other major foreign currencies are falling against the US dollar … not that the dollar is strong, but at the moment it’s the healthiest horse in the glue factory.

    Watch for the bailout.

    It’s precisely at times like these that it’s nice to have a president with a global view, who can put the competing interests of other countries –– and especially socialist countries –– ahead of the narrow and selfish interests of privileged Americans and Wall Street fat cats, and who can act as a champion for the international workers’ movement.

    Original “assault rifle,” circa 1776 :


    1774: banned from import
    1775: British attempt confiscation
    1776: Revolution

    • Noyzmakr says:

      Petronius says….
      ” not that the dollar is strong, but at the moment it’s the healthiest
      horse in the glue factory.”

      Very funny but somehow doesn’t make me feel any better.

      Original assault rifle…. CLASSIC!!!

      Revolution may be our only resort….wait, there’s someone at the door. Oh Sh%#!

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