Doing Their Cypriotic Duty




The good people of Cyprus are up in arms because their government wants to impose an additional 6 to 10 percent tax on their savings accounts.  If people in America aren’t alarmed, it’s because they believe the government can’t tax their savings accounts twice – that’s double taxation.

But we mustn’t underestimate the Internal Revenue Service’s creativity in finding ways to get more money out of our pockets and into their coffers.  It’s what they do.  If you don’t believe it, just take a look at all the regulatory “fees” on your cable bill.  The fees come to a total of about one percent of your bill.  Netflix is now contemplating raising its fees to subsidize those who can’t afford the $8 per month for its services.  Are you kidding me?

But that’s nothing to the whopping 20 percent tax the IRS placed on nightclubs and dance halls in 1944  ostensibly to off-set the costs of the war.  That was the same year that Glenn Miller died in a mishap over the English channel.

Patrons of such iconic Swing Era clubs as The Glen Island Casino found a 20 percent surcharge on their bills simply because the establishment offered dining and dancing together.  Called the “Cabaret Tax”, it finished off most of the dance clubs and the dance bands and gave birth to the undanceable music form, bebop.  The Cabaret Tax did herald in an era of new singers (prior to the birth of rock n’ roll),  The ballads were too slow to dance to and kept the clubs open for a while.

Pundits speculate that the Swing Era fans were past the age of dancing, and were ready to join their growing families under the spreading chestnut tree.  In addition, 400,000 young men did not return from World War II.  That left many ladies without dance partners.  Finally, the younger generation that got to hear the Big Bands during intermissions at theaters like The Paramount, couldn’t gain admission into the restaurants because they were under 21.

At the end of the sentimental bio film, The Glenn Miller Story, Miller’s widow and friends remark how kids would be dancing to his music forever.  How unfortunate that that prediction did not come to pass all because the government overextended its grasp.  Probably the trend would have changed anyway.  The kids today don’t know what they’re missing unless they happen to have Satellite Radio and get to hear the Andrews Sisters sing “The Strip Polka.” 

America should not be too complacent in her faith in the double taxation law.  Progressives are on a mission not just to destroy our incomes, but our wealth, the money we have accumulated through inheritance, savings, and investment.  That is why our IRAs and 401K plans are in their cross-hairs.

If Uncle Sam had the temerity to tax nightclubs in 1944, he’ll have no qualms about raiding our savings, investment, and retirement accounts.  It’s called “creative accounting.”

We’d better start figuring out how to stuff our mattresses and build false-front safes for our money.



Published in: on March 21, 2013 at 5:41 pm  Leave a Comment  

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