carry tax
(CAYR.ee taks)
n.
A tax imposed on the currency holdings of individuals and companies, particularly banks.
Example Citation:
The most egregious examples of governmental invasion of privacy relate to two of the most intimate areas in life—your money and your body. In September 1999, Marvin Goodfriend, a senior vice president at the Federal Reserve Bank of Richmond, proposed that government use new technology to penalize citizens who do not spend their cash as fast as government wanted. " The magnetic strip (in new U.S. currency) could visibly record when a bill was last withdrawn from the banking system. A carry tax could be deducted from each bill upon deposit according to how long the bill was in circulation."
—James Bovard, "Rise of the Surveillance State," The American Spectator, May 2000
Earliest Citation:
US currency should include tracking devices that let the government tax private possession of dollar bills, a Federal Reserve official says. . . .The 34-page paper argues a carry tax will discourage 'hoarding' currency, deter black market and criminal activities, and boost economic stability during deflationary periods when interest rates hover near zero.
—Declan McCullagh, "Cash and the 'carry tax'," Wired News, October 27, 1999
