Germany's 'Five-Wise-Men' Confirm Wealth Tax Is Coming

Tyler Durden's picture

As we have vociferously warned since September 2011, and most recently as the Cyprus debacle exploded explained why it is just beginning, Germany's Council of Economic Experts (or so-called 'Five Wise Men') just confirmed a wealth tax is coming. As the Telegraph reports, confirming our expectations, Germany warns that states in trouble must pay more for their own salvation, arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. They further added that targeting deposit-holders is also a mistake, since the "resourceful rich just move their money to banks in northern Europe and avoid paying," preferring instead taxes on property or other less-mobile assets, "for example, over the next 10 years, the rich should give up a portion of their assets." As we noted here and here, the differences between mean and median wealth in the peripheral nations suggest that people in the bailed-out countries are often better-off than those in Germany - - "this shows that Germany has been right to take a tough line of euro rescue loans." However, the implications of a wealth tax - implicitly impacting the pro-euro Southern European uber-rich - raises the specter of EU breakup once again.


Via The Telegraph,

Any serious move to a wealth tax could the erode the pro-euro ardour of South Europe’s uber-rich. The ECB bond buying policy has largely rescued the wealthiest strata while the full brunt of EMU austerity has fallen on ordinary people and the unemployed.


The political debate on euro membership may change dramatically if rich Cypriots, Italians, Spaniards, and Portuguese start to see EMU as a threat to their property, rather than a defence.

Via Der Spiegel,

Prof Lars Feld, another “wise man”, highlighted a recent study by the European Central Bank, which Germans say show that the people in bailed-out countries are often better-off than those in Germany. Less than half of Germans own their own home, lower than the rate in many southern eurozone members.


The ECB study found that the “median” wealth in Cyprus is €267,000 (£227,600), compared to just €51,000 in Germany. The median or midpoint level – which strips out the distorting effect of the super-rich – was €183,000 for Spain, €172,000 for Italy, and €102,000 for Greece, and even €75,000 for Portugal. Average wealth in Cyprus is €671,000, far higher than in the four AAA creditor states: Austria (€265,000), Germany (€195,000), Holland (€170,000), Finland (€161,000).


Prof Feld said the report showed that people in the crisis countries are richer than the Germans. “This shows that Germany has been right to take a tough line of euro rescue loans,” he said.

As Mark Grant comments:

Here may be the next "one-off" and it is a frightening one. A tax on "wealth and property" would almost certainly include equities and bonds. This then would mean that dividends and fixed income coupons would be taxed. This would ostensibly mean that if you were a U.S. money manager and that you owned securities in any Eurozone debtor states that you could get taxed on your investments. Then go one step further because if the debtor nation got into trouble you could have your holdings expropriated just like the depositors in Cyprus. This is scary stuff in my opinion.

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toys for tits's picture


'All your wealth is ours. We'll let you know what you need to live.'

DoChenRollingBearing's picture

Buy gold, and hold it quietly.

What Wealth Tax?

macholatte's picture


We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force.

Ayn Rand


 "The Party seeks power entirely for its own sake. ... We know that no one ever seizes power with the intention of relinquishing it.  Power is not a means, it is an end.  ... How does one man assert his power over another ... By making him suffer.  Obedience is not enough.  Unless he is suffering, how can you be sure that he is obeying your will and not his own?  Power is inflicting pain and humiliation.  ... A world of fear and treachery and torment, a world of trampling and being trampled upon, a world which will grow not less but more merciless as it refines itself. ... If you want a picture of the future, imagine a boot stamping on a human face--for ever."

-- George Orwell 1984


For the bureaucrat, the world is a mere object to be manipulated by him.

Karl Marx


Life is a corrupting process from the time a child learns to play his mother off against his father in the politics of when to go to bed; he who fears corruption fears life.

Saul Alinsky


I believe there's about 78 to 81 members of the Democrat Party who are members of the Communist Party. It's called the Congressional Progressive Caucus.

Allen West




Abraxas's picture


Lets all gang up to protect the millionaires and billionaires - out of solidarity. They wouldn't let us go broke, now would they?


Supernova Born's picture

This is the explanation for the coordinated gold smackdown.

Gold is likely a first thought for many when they hear "wealth tax".

knukles's picture

Last week they proposed nobody having over $3MM in personal retirement accounts meaning at age 65 with a divisor of some 27, say, a gross pre-tax minimum mandated withdrawal of approximately $111,000.
Now mention that to dentists, doctors, lawyers, and other self employed and they'll tell you its a wealth tax.
By hook or by crook, this current administration is bent upon wealth redistribution meaning that the rich aka $200,000 pre-tax gross unadjusted income (and soon to capture everybody but the free shit army) get poor while the poor get shit and the government bureaucrats live life on insider trading, government retirement and health care largesse.

some nice shit....


Oh and a PS... Take a quick guess how this is gonna play out alongside depositor thievery.
Right, I knew you'd guess it.... big boost to economic activity.
Fucking idiots

fonzannoon's picture

Yeah but knukles it's only fair because any federal worker who is accumulating a pension that will end up at the same amount or more will have to....will have to....umm....will have to.....I am sure they will have to something. Give me a minute....

Chupacabra-322's picture

The Global Criminal Cabal (Bankster/Intelligence)Crime Syndicate
Must be eliminated in somewhat the same fashion The Knights Templar were persecuted & executed .

fonzannoon's picture

through down arrows and facebook dislikes?

Boris Alatovkrap's picture

In other news, European tax collector now is equipped with pliers and forceps. If can't get at citizen's fillings, will go after first born.

... all in day's work.

AldousHuxley's picture

France already had wealth tax.

Inflation is wealth tax.

Your largest asset in real estate get wealth taxed...they just labeled it differently as "real estate tax".

Western religion tells you to pay 10% God tax. not taxed by government as a donation, but still money leaving your wallet to from liar who can't deliver.


Only way to avoid getting taxed is to become the tax collector...banks, governments, churches


Sandmann's picture

So did Germany but I think the SPD under Schroeder abolished it

casfoto's picture

We can get together another Templars Curse...put it on them. Maybe a few sticks of wood at their feet with a gallon of gas to help start the fire. How many times has this event happened through out history. Over and over. It is like waves crashing on shore. China took major steps thousands of years ago to stop the rich from taking the poor for a ride.  We should learn from history and not repeat the stupid mistakes of mankind. The biggest question is can we learn? Is there real progress or is it fleeting. I think progress is a myth.


Boris Alatovkrap's picture

Progress is not myth, is tool. Elite is use "progress" (and pogrom in name of "progress") to advance agenda to control and subjugate and sheeple majority don't just accept, but actual is fight for "progress". Idiots.

andrewp111's picture

The only way a Federal Worker can accumulate $3M in tax deferred assets is to make all the right trades in their TSP account - which has the choice of the S&P 500, a bond fund, an international fund, the uber-safe Treasury G fund (which has very low interest rates but never goes down), and a few other various and sundry options.. He would have to buy low and sell high at all the right moments, and is limited to maybe 6 trades per year. I'm sure some people can do this, but overall it will be extremely rare.

fonzannoon's picture

Dude the federal worker gets the pension. Are they capping pensions? Because 3 million in a 401k or IRA in a combination of stocks and bonds has a dividend yield somewhere in the range of 3%. So that kicks off about 90k in income.

I don't care if some federal worker has additional money in their tsp fund. I was being sarcastic about them capping the pensions, which I certainly don't hear that being discussed.

ebworthen's picture

Exactly Knuckles,

The global cabal of bankers and their political lackey's will pursue wealth taxes, and will sell it to what is left of the "middle class" as a way for them to avoid the same fate, while selling it to the poor as a way to "get even".

Then, when it just isn't enough, everyone will be taxed and have austerity imposed upon them, until the masses get up the guts and their inchoate anger turns to focused rage.

A lot of suffering and lost assets between now and then.

lewy14's picture

@knuk, killing economic activity isn't a bug for them, it's a feature.

They need to print money, and the way they prevent inflation from blowing up is to kill velocity.

The horror is not that this system isn't stable. The horror is that it is stable.

prains's picture

you guys keep talking symptoms, you're all make great financial doctors of diagnosis BUT who the fuck among you is the surgeon that's gonna cut the beasts heart out?????

let me know

andrewp111's picture

I think Real Estate, vehicles, and other registered, licensed, and titled assets first. They will initially go after those things that they know you have, or which cannot be moved.

sun tzu's picture

Let's all gang up and protect the politicians and bureaucrats - out of solidarity. They have our best interests at heart, right?

The problem with stupid people like you is that you don't realize that after they are done with the rich, they'll be coming after you. Besides, in this case the "rich" are people who make $250K/yr, not Warren Buffett, Bill Gates, and George Soros. They are exempt from any wealth taxes. 

Abraxas's picture

I have my opinion and you have yours. No reason to call each other names, is it? Is more of a sign of immaturity on your part.

stacking12321's picture

sun tzu, i agree with abraxas here, there's no reason to use a hurtful word like "stupid" when a more politically correct term is available, like "intellectually challenged".

seriously, though, it's not about millionaires or billionaires, it's about right and wrong. men of good conscience need to stand up against theft and say no, we do not support this.


jayman21's picture

It is the fight club....get over it

Blano's picture

I don't do PC, thus I prefer something more appropriate, like fucking idiot.

All Risk No Reward's picture

Sun Tzu, if these people would only read your book...

"All war is deception."
~Sun Tzu

Stuck on Zero's picture

It's all out war against the 1%.  Anyone care to wager who will win?


toys for tits's picture

First they came for the billionaires ... and I watched in amazement as they partnered up with them.

nmewn's picture

I see it too...there, in the treeline, hiding behind the children, beckoning for the parents to come closer for a better shot ;-)

All Risk No Reward's picture

It is more like the 0.01% against everyone else, the remainder of the 1% are useful idiots that think they are part of the team until the Night of the Long Knives 2.0 comes around, the 98% who are sucking their thumbs waiting for directions and the 1% that can't believe what they are seeing.

The revolution is between humanity's ears, but they want no part of it en masse.  They prefer make believe and the lies that soothe.

If you are Christian, you believe the demon spawn 0.01% win so big they would destroy themselves in the process...  except for divine intervention.

Say what you will, divine intervention is about the only thing that looks promising for the commone person at this point.  Everything else, from peak criminal finance to peak oil and over population relative to oil says...  just try and survive as long as possible and make it as pleasant as possible in the process.

Radical Marijuana's picture

Nobody will win. Everyone will end up losing. However, it usually is the poorest that lose the most, especially the most vulnerable, like the women with children tend to lose the most, while the richest will overall tend to lost the least. However, overall, the madness of a global system based on electronic fiat money frauds, backed by weapons of mass destruction, shares in the basic problem that has existed ever since weapons of mass destruction were developed. Amplifying old-fashioned greed and stupidity by technologies that that are trillions of times more powerful will result in everyone losing, more than we could currently imagine.

gorillaonyourback's picture

Abaxhas is one of the few who get it and he was down arrowed, even on zerohedge. WHO GIVES a fuck about a wealth tax, 80% of the people have only 7% of the wealth. Fuck the rich let them pay for their ability to sleep at night ,don't they want the cops and government to protect their life style. Or maybe the rich want me and my homies comin over and taken their shit. How about the next time a rich guy parks his ferrari i jack his car and go for a ride. Who the fuck does that rich guy think he is. Better than me lololololol.
And the 80% on this website ought to get a fucking clue

sun tzu's picture

Geez, another one. They're not going to confiscate from Buffett, Gates, Soros and the bankers. It didn't happen in Cyprus and it won't happen here. They will confistate from people who make $250K/yr and your 401k/pension/IRA. You think Warren Buffett and Bill Gates are driving farraris and lambos?  You're pissed off at successful doctors and small business owners when it is the bankers, politicians and international financiers who robbed your ass. They pulled  quick one on you mental midgets. 

All Risk No Reward's picture

Tzu, where can I get my fair share of "bliss" that comes from ignorance?  The people just crave it so it must be incredibly good.  I'm stuck in reality and it pretty much sucks, most of all because of the blissfully ignorant not pulling their fair share while trying to get government to loot the hell of other people and shower "fair share" onto themselves.

The whole scenario is just sick.

Random's picture

Somehow i am of the opinion that the millionaires and the billionaires are not the problem (well, i am sure of it). I am more concerned about the trillionaires, quadrillionaires and octillionaires.

trollin4sukrz's picture

What Wealth Tax? The 55% when one tries to sell.

Dre4dwolf's picture

Gold is great because its not loud, the fucking FRNS in your bank account rat you out.

TruthHunter's picture

"Buy gold, and hold it quietly."

Or buy Gold and take it canoeing.

Or stage a break in...same with guns and ammo.

Everybodys All American's picture

... and that should signal the end of big government. But will it.

sun tzu's picture

Before it collapses, there will be tyranny in a desperate attempt to hang on to power. There is too much money at stake for them to roll over

JJ is Waiting's picture

"... there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs..."


What more does anyone need to hear before moving their assets to somewhere or into something safer?

Imminent Crucible's picture

Yep. He's proposing that the govt of Italy, or Spain, or Luxembourg FIRST empty the bank accounts of private citizens, and then start seizing their homes and jewelry to pay back what politicians stole and socked away in Grand Cayman and Zurich.

Time for me to get my asset outta here.

StychoKiller's picture

Reporter:  "Willie, why do you rob banks?"

Willie Sutton:  "Because that's where the munny is!"

Anusocracy's picture

These machinations are similar to plea bargaining.

In the end, the dupes will gladly accept a tax that is half as bad as what was first proposed.

daxtonbrown's picture

Where's Hitler when you need a go-to guy to efficiently expropriate wealth?

Chuck Walla's picture



with quite a bit for ourselves, don't tell anyone...

tmosley's picture

Now comes yet another housing crisis.

Good job, guys.

max2205's picture

Barry onto one gets more than 300k over year

Hulk's picture

The shit we are witnessing is truly stunning...