March 19, 2013
The initial “Plan A” of the Cyprus bailout was simple.
Those holding less than 100K euros in their bank accounts would be subject to an instant deposit levy of 6.75%.
Those holding more than 100K euros would face a tax of 9.9% (on deposits above the threshold).
Yesterday there was growing talk about making it all more progressive, and even completely sparing sub-100K depositors, who were technically “insured.”
The downside of sparing sub-100K depositors is that you have to really crank up the tax on the rich, and that means hitting the Russians and other folks who use Cyprus as an offshore banking center, which is fine, but then you’re decimating one of the island’s biggest industries.
This article was posted: Tuesday, March 19, 2013 at 6:22 am