You probably thought that the money in your bank account belonged to you. Well, it once did. That’s not likely the case anymore.
Two years ago Cyprus was faced with a financial crisis. There was talk about bailing out their banking system, but a new “fix” hit the fan.
It was a lovely March day in the Mediterranean and people woke up not just to a new day, but to a whole new world. Their banks doors were locked and their ATM access was shut down.
The Cypriot government, with the blessing of the EU, did what could be considered a “reverse bail out,” or what’s come to be known as a “bail-in.”
Bottom line, the government forced fees on account holders to pay for the banking problems.
This runs totally counter to banking in the US. Remember, here in the US your account is supposedly protected by the Federal Deposit Insurance Corporation. The FDIC was put together in the depression to give people confidence in their banks. Your deposits, up to a certain maximum, are insured by the Federal Government.
Instead of “insuring” your account, the Obama administration is preparing to “attach” your account.
A new political scheme to tax bank accounts, according to the Australian Financial Review, might be locked in place in Australian banks as soon as January 1, 2016. [1-4] This could quickly be copied by other tax-hungry welfare states, including ours.
This bank deposit tax will likely begin at a low percentage, to create a legal precedent; but it is expected to grow rapidly, as the income tax did in the United States.
Like many modern taxes, this planned tax on bank accounts is being framed as a tax on the banks, not on individual customers. Its cost, however, will be passed on to depositors in the form of higher fees or lower interest paid on their accounts.
This tax on bank deposits is projected from its start to raise around $500 million each year, purportedly for a “Financial Stabilization Fund” to help protect banks from collapse in future financial crises.
Here in the US, Obama and the Democrats will frame this as a “bank fee” to “protect the middle class.” It isn’t and it won’t. This scheme is just another way to “raise revenue” for the politicians in Washington.
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