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Reuters: Cyprus Parliament To Veto ‘Wealth’ Tax

From Reuters:

Cyprus parliament ready to veto deposit tax

By Michele Kambas and Karolina Tagaris | March 19, 2013

NICOSIA, March 19 (Reuters) – Cyprus’s parliament was set to reject a divisive tax on bank deposits in a vote scheduled for Tuesday, a government spokesman said, a move that would push the island closer to a default and banking collapse…

Cypriot and euro zone officials have sought to soften the initially proposed levy of 6.75 percent on depositors of up to 100,000 euros and 9.9 percent above 100,000 to ease the burden on small savers.

Actually, they were planning to tax rates above $130,000 (US) at 12.5%, and possibly even 15.6%. (See below.)

But passage of the bill in the 56-member chamber, where no party has a majority, was unlikely and it was not clear if the vote would even go ahead later on Tuesday if leaders were sure it would be rejected.

"It looks like it won’t pass," Cypriot government spokesman Christos Stylianides told state radio.

The House of Representatives was expected to meet at 1600 GMT. Rejection of the measure would effectively block a bailout that Cyprus needs to keep its banks afloat and government paying wages and welfare.

Because there is no way to cut spending. That isn’t possible.

Tuesday’s vote, originally planned for Sunday, has been postponed twice already. Three parties have said outright they will not support the tax, while a fourth, in the co-governing coalition, said it cannot support it as it stands either…

Which is pretty amazing, given that we are told that you can do anything as long as you punish the rich more. Maybe there will come a day when class warfare won’t work in our country.

Cypriot Finance Minister Michael Sarris was due to hold meetings in Moscow on Wednesday, partly to try and get an extension to an existing 2.5 billion euros loan…

For which Putin will undoubtedly demand the rights to Cyprus’ oil and gas deposits.

Stunned islanders emptied cash machines over the weekend and banks are to remain shut on Tuesday and Wednesday to avoid a bank run. Hundreds of protesters rallied outside parliament on Monday, honking horns and holding banners saying "We are not your guinea pigs!" …

They are as long as they have no real way to fight back.

Seeking to overcome divisions within the government’s own ranks, ministers scrambled to ease the pain for small savers by tilting more of the tax towards those with deposits greater than 100,000 euros.

Euro zone finance ministers were in favour of imposing a 15.6 percent levy on deposits of above 100,000 euros to help recapitalise Cyprus’ financial sector while sparing depositors up to that level…

In other words, they were trying to placate the protesters with class warfare. Amazingly, it doesn’t seem to have worked. At least not yet.

While Brussels has emphasised that the measure is a one-off for a country that accounts for just 0.2 percent of European output, fears have grown that savers in other, larger European countries will be spurred to withdraw funds.

"If you’re a small depositor in Cyprus you’ll tell yourself that it would have been better to keep your money under the carpet than in a bank," said a French bank executive who declined to be named.

"And if you’re a Greek, a Spaniard or an Italian, well, you’ll tell yourself that you might be next."

Why stop with Greece, Spain and Italy? We could all be next.

This article was posted by Steve Gilbert on Tuesday, March 19th, 2013. Comments are currently closed.

4 Responses to “Reuters: Cyprus Parliament To Veto ‘Wealth’ Tax”

  1. What’s described here isn’t a VETO. It’s the realization that they overreached and that there may be consequences to the ruling class. They did their best to steal this money without anyone finding out before it was done. Sadly for the government, twitter saved the masses from being robbed in their sleep.

    • Rusty Shackleford

      Thus, the reason why governments worldwide want to control the internet and social networks like that.

      There must be something in the water. We are witnessing grand larceny on a huge scale here. If you or I did it, we’d be sent to prison. But even the semantics games used by governments to justify stealing are even more absurd than the arguments given by lawyers of thieves to the court.

      This is what Royalty used to do to the serfs. “We are taking it because WE need it.” Or…even better…no reason given. At least these pickpockets are making some half-assed attempt at “justification”.

      I am reminded of a conversation when I was eleven. I had been given $20 as a birthday gift. I spent the money on bubble cum cards, comic books, candy, a stupid toy that broke in a half-hour and other useless things.

      A week later my brother and I went to the hobby store with my dad. I found a model kit I had wonted for some time and asked if I could get it. My dad said, “Hey…that would be a good thing for that birthday money; Why don’t you use that.”

      Embarrassed, I put the kit back on the shelf. On the way home, he asked me why I didn’t buy it and I had to tell him the truth. He stopped the car, turned around and looked at me and said, “I hope you have learned something. Save your money to buy things you know you really want instead of things you think will make you happy right now.”

      Tough concept for a kid of eleven. But…that’s where the parenting/training kids to become responsible adults begins. Hard lessons that aren’t so hard as to ruin lives. Now….Europe has been using other people’s money to pay for things that will “make them happy right now” only to find that down the road they are broke…and need money for the things that are important because they blew it all on CRAP!

      Well, good luck with that.

      Added to that….we are in a bit of an interesting pickle because of a subject that I have noticed over the years….that I call “compartmentalization”. I has nothing to do with the previously mentioned tale from my youth but with the oncoming impending theft of my money by the government. If it was 1700, the people who took it would be easily identifiable and I could go seek them out, armed and get my money BACK.

      But we live in the age of monumental bureaucracy. I will never be able to determine who was responsible for taking my 401K on an individual basis so any threats made by me will be either misdirected or in error because the person I hold responsible was “only the guy who fills out the form…not the guy who made it happen”. And finding the “guy who made it happen” will be impossible…all by design and the nature of bureaucracy. Thus, the GOVERNMENT official must be held accountable.

  2. xdannyh

    The perils of socialism coming home to roost. Like Thatcher stated: “Socialism is great, until you run out of other peoples money” (paraphrased). But the cat is out of the bag, Pandora’s box has been opened. The only way to pay for the costs of the nanny state is to steal from those that have. The “one time only” and “exceptional case” and “not considered in other jurisdictions” is the ruse, but it only tips their (all debtor states) hand about what is coming down the pike. Now the lingo is that Cyprus will only confiscate from the “very rich”. Well I have a question: Who the hell do you think actually puts money in a bank? O yes of course it is the poor. When you tell the “rich” that their money will be confiscated, will they make deposits? Not likely..and Gee with no deposits the banks have no capital….imagine that…I must be a financial wizard.
    The eurozone has figured out a really neat way to destroy themselves and perhaps the financial world setup. The message is out…reverberations will be felt across the globe. Coming soon to a bank near you…..A Run……My take: in order to protect their money all former savers will buy commodities, and hide their money in the US stock market creating a bubble in both areas that will burst down the line and make the 08 debacle seem like a cakewalk.
    Oh and BTW “have a great day” compliments of the great and all knowing world leaders.

  3. captstubby

    and a Democrat would say;

    “well, if you put it THAT way…
    but people need that money and the “Rich” got too much.”




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