Gold pattern pointing up, page-500

""Skol what do you think of the Abbott government introducing a compulsory tax on money held in Bank accounts.
Good or Bad"

First, is there any optional tax anywhere in the world? Probably not.

Second, is there any tax on money held in Bank Accounts anywhere in the world? If so then why would people be willing to pay such tax when they could avoid paying it by withdrawing their money and keeping it at home?

One thing is tax on an income component called interest and another a tax on money kept in deposit.

As far as I know the only tax on money is some form of transaction tax which just happens when money changes hands. In some countries, including in Australia, tax on income in the form of interest is being withheld when the tax file number is not supplied.

Apart from that there are countries that tax interest on a flat basis and that because of that the tax is paid at the source. For instance, interest is taxed at 20% regardless of the capacity to pay of the taxpayer ( his or her total income) and the money is taking out from the total interest to be paid and remitted directly by the bank to the tax office.


In short, what really is that terrible tax on money that is scaring all of us?