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Swampfox10mm
Joined: 24 Mar 2011
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Swampfox10mm
Joined: 24 Mar 2011
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bucheon bum
Joined: 16 Jan 2003
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Deja
Joined: 18 Mar 2011
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 Posted: Tue Mar 19, 2013 5:51 am Post subject: |
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The idea that another body can ask something like this is surely causes enough heads to think how the world works.
I feel like I pay that tax in Korea all the time though. The banks take 1.5-3% of any non-KRW currency deposited. TF. |
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Otherside
Joined: 06 Sep 2007
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akcrono
Joined: 11 Mar 2010
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| Posted: Tue Mar 19, 2013 10:43 pm Post subject: |
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| Well, probably fairly progressive, at least less regressive than a consumption tax. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Tue Mar 19, 2013 11:03 pm Post subject: |
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edit
Last edited by slothrop on Sun Apr 07, 2013 4:09 am; edited 1 time in total |
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comm
Joined: 22 Jun 2010
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| Posted: Tue Mar 19, 2013 11:08 pm Post subject: |
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| So why the outrage? I would venture to say that the real difference between the bank levy and other solutions is that the levy is transparent and obvious, while the wealth effects of devaluation or inflation are hidden. |
It would be glorious if people were to realize that printing money has the same effect as this proposed bank robbery. But then that's the only way modern governments can operate: through obfuscation. You have no idea how much you pay in income tax every year because it's confiscated before you even take ownership of it. People used to write one big fat income tax check to the government every year and made damn sure they got what they paid for.
It's the same deal with inflation vs deposit confiscation. As long as the toad's water is heated slowly, it will sit peacefully until it's cooked. |
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Fox
Joined: 04 Mar 2009
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| Posted: Tue Mar 19, 2013 11:35 pm Post subject: |
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| comm wrote: |
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| So why the outrage? I would venture to say that the real difference between the bank levy and other solutions is that the levy is transparent and obvious, while the wealth effects of devaluation or inflation are hidden. |
It would be glorious if people were to realize that printing money has the same effect as this proposed bank robbery. |
Right, but it's not exactly true. Inflating the Euro impacts anyone who uses the Euro (i.e. your average European), while the main reason that the Cyprus deposit "tax" was pushed was because in recent years the ratio of Russian deposits to non-Cypriot EU deposits shifted sharply towards the Russians. It's precisely because it wouldn't have the same impact on the average non-Cypriot Europeans that this method has been pushed. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Tue Mar 19, 2013 11:40 pm Post subject: |
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| Fox wrote: |
| comm wrote: |
| Quote: |
| So why the outrage? I would venture to say that the real difference between the bank levy and other solutions is that the levy is transparent and obvious, while the wealth effects of devaluation or inflation are hidden. |
It would be glorious if people were to realize that printing money has the same effect as this proposed bank robbery. |
Right, but it's not exactly true. Inflating the Euro impacts anyone who uses the Euro (i.e. your average European), while the main reason that the Cyprus deposit "tax" was pushed was because in recent years the ratio of Russian deposits to non-Cypriot EU deposits shifted sharply towards the Russians. It's precisely because it wouldn't have the same impact on the average non-Cypriot Europeans that this method has been pushed. |
Also, the hit will be higher towards people with more wealth. Furthermore, the poor have little holdings and will likely lose very little. Inflation is not nearly so progressive. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Tue Mar 19, 2013 11:52 pm Post subject: |
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edit
Last edited by slothrop on Wed Mar 20, 2013 7:56 pm; edited 1 time in total |
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Fox
Joined: 04 Mar 2009
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| Posted: Tue Mar 19, 2013 11:53 pm Post subject: |
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| akcrono wrote: |
| Fox wrote: |
| comm wrote: |
| Quote: |
| So why the outrage? I would venture to say that the real difference between the bank levy and other solutions is that the levy is transparent and obvious, while the wealth effects of devaluation or inflation are hidden. |
It would be glorious if people were to realize that printing money has the same effect as this proposed bank robbery. |
Right, but it's not exactly true. Inflating the Euro impacts anyone who uses the Euro (i.e. your average European), while the main reason that the Cyprus deposit "tax" was pushed was because in recent years the ratio of Russian deposits to non-Cypriot EU deposits shifted sharply towards the Russians. It's precisely because it wouldn't have the same impact on the average non-Cypriot Europeans that this method has been pushed. |
Also, the hit will be higher towards people with more wealth. Furthermore, the poor have little holdings and will likely lose very little. Inflation is not nearly so progressive. |
Then again, who do you think keeps a greater percentage of their total wealth in domestic savings accounts: a middle class Cypriot, or an ultra-wealthy Cypriot? Sure the ultra-poor will probably be spared the pain, but that alone isn't enough for an overall progressive affect.
It's also a total betrayal of the very deposit guarantees governments put forward to encourage people to keep their money in the banks in the first place. The real answer here is to face up to an obviously defective system and reform it, not trying to shake down some Russian depositors for a quick fix. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Wed Mar 20, 2013 12:33 am Post subject: |
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Based on the value of many of the holdings, most of the money will NOT come from the lower or middle classes. If anything, it's a tax on various Russian mobsters.
The point about government guarantees is a very good one. It's possible that future banking will be disrupted due to concern over another tax in the future. Iceland was even worse about this. It will be interesting to see how this effects the banking economies of both countries going forward, as people's predictions are based more on speculation than on history. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Wed Mar 20, 2013 1:26 am Post subject: |
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| Might also be worth mentioning that the plan (which didn't pass anyway) exempted the first 20,000 euros. |
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comm
Joined: 22 Jun 2010
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| Posted: Wed Mar 20, 2013 2:26 am Post subject: |
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| akcrono wrote: |
| Based on the value of many of the holdings, most of the money will NOT come from the lower or middle classes. If anything, it's a tax on various Russian mobsters. |
If that were the case, why not tax money entering/leaving the country instead of deposits? I know Cyprus relies heavily on its banking industry to stay afloat, but surely this would have stood a better chance of passing?
| akcrono wrote: |
| Might also be worth mentioning that the plan (which didn't pass anyway) exempted the first 20,000 euros. |
The original plan exempted no one. The fact that they tried to water it down in response to public outcry is pretty meaningless. |
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