“It would be the same thing here if withholding were abolished and people had to write a check monthly or quarterly payable to government.”
Bad example. People who own their own businesses, as opposed to receiving a pay check, do just that.
No, the difference between this and all other taxes, is that this is on assets not on earnings. The person with the Cypress account may have already paid 50% tax on this money when it was earned.
Heh. That only makes it a property tax. But I don’t even think that is this scenario. This is a senior secured creditor taking a haircut. Scary but not unheard of. Look at all those screwed by GM.
What is bank account but a debt the bank owes?