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The Cypriots had until recently refused to toe the ECB/IMF line of imposing a high levy on large investments, fearful of scaring off the Russians who have poured billions into Cyprus.
Officials had been surprised, in the negotiations in Brussels, that the Cyprus side were willing to impose such a high levy on the poorest savers, in order to limit the "sticker shock" for Russian high rollers with holdings of more than 100,000 euros.
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How funded: £800m cost paid for by a higher levy on the banks.
Banks that make a lot of money and pay high wages and bonuses will pay a higher levy.
The idea of safeguarding universal benefits through a higher levy on the banks has both popular and moral force.
But 150% of the usual council tax is the maximum we can charge – a higher levy would have greater impact.
Closely tied to the estate tax is a higher levy on capital gains, which was devised in 2001 to replace revenue that would be lost from estate taxes.
Raw coffee beans may be tariff-free, but roasted beans incur a higher levy, and so on as they are ground, decaffeinated and so forth.
See articleJulia Gillard, the prime minister of Australia, scored a political victory when the lower house of parliament passed the controversial Minerals Resource Rent Tax, which will subject mining companies to a higher levy on annual profits.
The one-third reduction in property tax revenue would be offset by a new, higher levy on business, a $1 per-pack increase in cigarette taxes and a portion of the state's $8 billion treasury surplus.
He also called for a big increase in capital spending on road building and construction – probably funded by a far higher levy on banks and action against bankers' bonuses – to boost economic activity and create jobs, in a departure from Labour's policy at the general election.
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