That " Bank Deposit " tax !

When " Income Tax " was first proposed it was a very logical suggestion.  The government provides a host of services for the use of all citizens and a small levy to pay for them seemed a very good idea.   This tax was on a sliding scale, hence the more we earned - the more tax we paid.

Since then successive governments have created a minefield through which our earnings must pass before they actually become " ours ".    Over the years they have introduced the " Fringe Benefits tax " and the  " Capital Gains tax "  - and now there is this brand new impost on the money that finally made it into our bank accounts.

The charge will be  miniscule - just 0.05% annually, hence a balance of $ 10,000 will cost it's owner just $ 6 a year - and a $ 250,000 deposit a government " contribution " of $ 150.

The government is trying to plug a huge black hole in it's accounts, but the reason given for this new tax is to create a safety net to guard against bank insolvency. Of course the government already pledges to guarantee the security of our funds in banks, building societies and credit unions, so this new tax is really a way to reimburse Treasury for the cover so provided.

What will worry many people is the principle involved.    The government is assuming the right to delve into our bank accounts for what they claim is a very necessary reason - and once we accept that principle we become vulnerable to what happened to citizens of a small overseas country.

Their banks went broke - and the government simply seized a big portion of their deposits and used them to refinance those same banks.   Account balances were frozen or only permitted small withdrawals - and the depositor issued with a piece of paper declaring that they were now a " shareholder " of the bank to the degree of money taken from their account.

This could be the first step on a very slippery slope.    It brings to mind an old adage from a distant childhood - which seemed to be the guiding force of socialist thinking.

" Whats yours is mine - and whats mine is my own ".

A point to ponder !