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German Commerzbank Suggests Wealth Tax In Italy Next

Posted By yihan On March 18, 2013 @ 6:25 am In Money Watch | Comments Disabled

Zero Hedge [1]
March 18, 2013

While some argue that Cyprus was “one of the biggest money-washing machines for Russian criminals,” and others that Cyprus ex-Pat community and energy resources brough deposits (not to say their high deposit interest rates), it seems the European Union (IMF et al.) have decided that the route to crisis stabilization, just as we outlined here over a year ago [2] and updated here [3], is through a wealth tax.

However, as Handelsblatt reports [4], the gross distortions of wealth distribution among both core and peripheral nations (evident in the chasm between ‘mean’ and ‘median’ net assets – or wealth) makes some nations more ‘capable’ of ‘giving’ and as Commerzbank’s chief economist notes, median wealth in Italy is EUR164,000 (as opposed to Austria’s median of around EUR76,000 and mean of around EUR265,000) meaning that in theory Italy has no debt crisis (with net assets at 173% of GDP) – significantly more than the Germans at 124% - “so it would make sense, in Italy a one-time property tax levy,” he suggested.

A tax rate of 15% on financial assets would probably be enough to push the Italian government debt to below the critical level of 100% of gross domestic product.” So there you have it, the ‘new deal’ in Europe, as we warned, is ‘wealth taxes’ and testing the “capacity of Cypriots” appears to be the strawman on what the public will take before social unrest becomes intolerable.

 


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URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/2013-03-17/german-commerzbank-suggests-wealth-tax-italy-next

[2] we outlined here over a year ago: http://www.zerohedge.com/news/muddle-through-has-failed-bcg-says-there-may-be-only-painful-ways-out-crisis

[3] updated here: http://www.zerohedge.com/news/2013-03-16/everyone-shocked-what-just-happened-and-why-just-beginning

[4] as Handelsblatt reports: http://www.handelsblatt.com/politik/international/brisante-daten-die-maer-von-den-klammen-krisenstaaten-seite-all/7931578-all.html

[5] Study finds median wealth for single black women at $5: http://www.prisonplanet.com/study-finds-median-wealth-for-single-black-women-at-5.html

[6] EU calls emergency meeting as crisis stalks Italy: http://www.prisonplanet.com/eu-calls-emergency-meeting-as-crisis-stalks-italy.html

[7] Marc Faber: “I Am Sure Governments Will One Day Take Away 20-30% Of My Wealth”: http://www.prisonplanet.com/marc-faber-i-am-sure-governments-will-one-day-take-away-20-30-of-my-wealth.html

[8] GOLDMAN: Now Everyone With Deposits In Euro Zone Banks Has To Worry About A New Wealth Tax: http://www.prisonplanet.com/goldman-now-everyone-with-deposits-in-euro-zone-banks-has-to-worry-about-a-new-wealth-tax.html

[9] The Game Will End Quite Suddenly – All That Will Be Left is the Real Wealth That You Have in Your Friends, Skills, and Assets *Video*: http://www.prisonplanet.com/the-game-will-end-quite-suddenly-%e2%80%93-all-that-will-be-left-is-the-real-wealth-that-you-have-in-your-friends-skills-and-assets-video.html

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