GOP lawmaker offers bill to prevent Cyprus-like run on savings accountsSubmitted by Ed Thinking on Thu, 03/21/2013 - 14:56
The measure from Rep. Billy Long (R-Mo.) was inspired by the banking crisis in Cyprus, which sent shivers through the markets this week when it considered assessing a levy against all bank deposits to help pay for a bailout of its major banks.
On Tuesday, Cyprus' parliament rejected the idea of taking money from depositors, which some say could result in a quicker collapse of its banks.
Long said Wednesday that his resolution, H.Res. 129, was introduced to ensure the United States never considers a levy on deposits.
"The government should not tax people's private savings accounts, which they have already paid taxes on, especially for the purpose of funding more bailouts," Long said. "I was shocked by the news that some countries might be considering these kinds of taxes, and I think Congress should say that this kind of tax won't happen in America."