Cyprus

If you haven’t seen the news by now, yet another small economy has fallen to the level of taxing money. Jamaica has announced that a tax will be imposed every time citizens access their own money. This means that every time a Jamaican uses an ATM, that transaction will include a tax.

Might this become the trendy new solution for dozens of countries facing economic duress? Before you dismiss the thought, look at what’s already happening. We’ve seen Cyprus tax people by claiming a significant percentage of all funds residing in bank accounts. Just last December, international news headlines trumpeted Brazil’s tax plan for ATM users — “Brazilians to Pay More to Shop Abroad as ATM Tax Surges 1,600 percent.”

Here in the U.S., one congressman took an equally interesting approach. Representative Chaka Fattah, D-Pa., introduced a bill, “Debt Free America Act,” that would have eliminated all federal taxes on individuals and corporations and would have replaced them with a revenue-generating system based on transaction fees. Read More