March 27, 2013
The prospect of a tax on deposits in the banks of Cyprus has even left-leaning economic commentators in a tizzy.
“A tactical blunder,” declared Lawrence Summers, who was President Clinton’s Treasury Secretary and chairman of the National Economic Council for President Obama. A proposed tax of 6.75% on deposits up to about $130,000 and of 9.9% on deposits of more than $130,000 “would unfairly punish savers and could do lasting damage to confidence in banks in other euro-zone countries in financial crisis,” the New York Times wrote in an editorial denouncing the idea.
Well, forgive us, but coming from the same Secretary Summers and New York Times editorialists who have championed higher taxes here in America, this strikes us as a bit rich.