That there was an instant pushback against government seizure of property (aka taxes) is very significant. It is because of the nakedness of Cyprus’ action.
Imagine what would happen here in the US if all taxpayers had to write a check monthly payable to the IRS, instead of having the payment hidden in the withholding portion of their paychecks.
Yes, the withholding scheme allowed the government to bleed dry its nascent sharecroppers.
President BO inadvertently caused people to focus on that little trick when he allowed the payroll withholding to go up - it could prove to be his Waterloo.