but wait , there's more

Do you think what happened in Cyprus can’t happen in America or Australia? The fundamental issues are the same: governments borrow and spend, taking ‘revenues’ for granted. When ‘revenues’ fall due to lower economic growth (which is not responsive to lower interest rates), the spending remains. You have a deficit.

Australia has a budget deficit now. One way the current government wants to reduce that deficit is to change the tax rules on what it calls high-income savers. This amounts to a ‘budget bailout’ by raiding the retirement accounts of self-funded retirees. That’s not much different than what happened in Cyprus, where lifetime savings were shaved by 40% in the cause of ‘saving’ the financial system. 

Here in Australia, last year’s budget stipulated that if you earn over $300,000 and plan on funding your own retirement, your contributions to your own retirement will be taxed at 30% now instead of 15%. The government is also considering taxing the earnings on your retirement savings at twice the current rate, from 15% to 30%.

This is done in the name of ‘sustainability.’ But that word is a polite mask for theft. That is, for the government to keep spending your money on the people and things it prefers, it must either take more of your money or cut spending. Guess what it’s going to do? 

The government will eliminate ‘concessions,’ or the amount of your own money it allows you to keep. Using the word ‘concessions’ to describe the tax rate on self-funded retirees is also a transparent attempt to turn the tables on savers. A ‘concession’ is something that someone gives to you. As such, it can be taken away. Using the word ‘concession’ implies both generosity to begin with and the moral authority to change the rules for ‘the greater good’.


This isn’t just class warfare. It’s war on common sense and economic liberty