A European plan could force Cyprus to tax bank depositors as a condition of a bailout, potentially damaging confidence in banks across the euro-zone. The plan involves a tax on deposits, with smaller deposits facing a 6.75% tax and larger ones a 9.9% tax, to raise 5.8 billion euros. European officials suggest flexibility in the tax structure, urging protection for deposits under 100,000 euros. The editorial criticizes the plan for setting a bad precedent and suggests taxing larger deposits more heavily, especially those of Russian businessmen using Cyprus as a tax haven.
documents/EFTA01122896.pdf
{}