In the case of Cyprus, understand that this is a manufactured "emergency." Cyprus didn't suddenly become "insolvent" in March 2013 and this phony bailout (i.e. lending more money to an insolvent economy) won't solve anything -- it's just another temporary band-aid to delay inevitable debt-default.
Note that along with being the only possible fair form of taxation that wealth taxation is also the only efficient form of taxation. Since nothing can be hidden from a wealth tax it replaces all other taxes. No more income tax. No more sales tax. No more corporate tax. No more capital gains tax.
In other words, we would have capitalist/consumer economies that (for the first time in history) would not be harshly penalizing income, profit, and consumption. What a radical concept!
Why do we not already have wealth-taxation across all of our economies? The reason is obvious: It's because it's the only form of taxation that does not provide the billionaires with their accustomed free ride. This reflects the persistent belief among these billionaires themselves that the only thing thath has allowed them to acquire (and maintain) such unimaginably huge hoards of wealth in the first place is a taxation system which provides a free pass to the richest-of-the-rich.
A flat wealth tax is the only way to tax our economies fairly and efficiently. It is a form of immediate economic "stimulus" which doesn't cost a penny. There can be no possible objection to such positive tax reform. Note that a wealth tax would also encourage these billionaires to actually use their vast hoards of wealth.
Use it or lose it. If the billionaires had their "free ride" taken away from them -- and their antiques, yachts and other valuable trinkets accumulated exposed to taxation -- then they would suddenly have a direct monetary incentive to invest that capital productively so that it produced (untaxed) income. More free stimulus.
Among the many reasons our economies are all on the brink of outright bankruptcy is that we have the largest percentage of capital sitting in these idle hoards of wealth. Our
are about to die from anemia.
Tax the billionaires and go easy on the bank accounts of the widows.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.