We have our own mini-Cyprus style “tax” being levied here in California. For those who don’t have the background information on Cyprus, the IMF and EU just tried to steal 6.75% to 10% from every savings account in Cyprus to help pay for a €15.8 billion financial bailout. And for anyone who thinks it can’t happen here, know that it has happened here on a smaller scale.
The California Franchise Tax Board rescinded a tax break dating back to 1993. The tax was a business exclusion that allowed businesses to exclude or defer 50% of the profits of sold stock from their personal income taxes. This actually happened in December.
It was a lure for startup businesses.
The franchise board is not only taking it back but they are also charging the interest and possible penalties retroactively to 2008. This is for something the business owners never knew they would ever owe.
I think some businesses might head for Texas.
Remember when Nancy Pelosi wanted to rescind inheritance tax breaks for some people and make them retroactive? People like Pelosi love to do this sort of thing and it isn’t always the rich who get hit as we saw in Cyprus. It won’t always be businesses getting hit. The government statists will eventually come after everyone.
Full story of the California businessmen at The Future of Freedom Foundation