The problems with this are that it increases government control over their populations, and the capacity to tax unfettered by any control.
It enables governments to totally control every single member of their population, simply by capturing the resources which are used for self-protection. Without funds people are totally vulnerable. This is why, for all of history, income and resources have been jealously guarded secrets. It was unthinkable in the recent past to even ask what salary someone was earning.
There is a historic truism that governments have increased the tax burden on their populations progressively until there has been a revolution, or major demographic shift (as in Mayflower).
Those “revolutions” have usually taken the form of reactionary wars, that is governments have been opposed by physical means. Controlling the finances of every individual effectively dis-arms the population entirely
The street demonstrations now flaming across Europe would do better to protest against this legislation than any itsy-bitsy fragments of perceived loss of “rights”, since the secure possession of resources is the supreme security of humans.
The threats are not the “tax evaders”, who are labeled emotively as “anti-societal”, but instead the greatest dangers are governments with supreme control – that is the ultimate “anti-societal” threat.
To justify the governments’ attempts to maximize extraction of resources from their populations emotional manipulation of the crudest kind has been uses. Apart from the old saw about “depriving others” (which is easily shown to be fallacious), other threats are “anti-terrorism” and “anti-drug” crusades. Both can be shown to have no valid basis.*
There should never be tax on savings and frugality. Point-of-sales tax is the obvious answer.
Taxing interest (which counters inflation and storage cost) is, itself, immoral. Inflation is the failure of a government to sustain the value of its currency, and by extension the value of the product of every productive member of its population.
Demanding your data is highly dangerous:
On one hand that data can be accessed, and hence bought, by many. There is a thriving secondary and tertiary market already well established. The German Government itself did exactly this in exercise in theft, for which little remorse is shown. Does that remind of National Socialism and despotic population control?
But suppose another government came into power – perhaps an invading force – that group would immediately clamour for and claim all money that it possibly could. This would include, of course the collective resources of all the individuals in that country. These would be neatly collected and packaged for the handover, from you to the invaders.
In reality that is happening at present, where the un-elected controllers of the European union are already acquiring your savings. Which way will this European Union go when the controlling mandarins realise that they have huge cash resources? This is unpredictable. But other invading marauders are not to be excluded. ISIS works by ravaging conquered lands. How easy it will be for ISIS to gain control of all the funds in Europe, all vulnerably kept or controlled by existing governments.
The governments themselves might falter and fall, as attested by the millions of Soviet pensioners who entrusted their funds to their government, believing it would be returned in the form of pensions. It never materialized.
The British prevented “indexing” (adjustment for capital depreciation associated with inflation) for many who had contributed to National Insurance for their entire working life, because these pensioners followed their children abroad. War widows were prevented from re-marriage or co-habitation, because they would lose their pensions. Take care about trusting any government with your funds, forcefully extracted from you by “political policy” usually engineered by bureaucrats.
For another examples look at Robert Mugabe, who looted and so made some of his population so destitute that husband would shoot wife, and then himself. That population formaly felt secure by their kinship to Britain. “They will rescue us” was both the implied and spoken arguments to appease fear. Did they? Some hope.
*ISIS (Islamic State of Iraq and the Levant ) is the world’s largest, richest terrorist organizations, ever. It’s a self-sustaining enterprise that runs mainly on extortion and crime networks, hostages, oil, donations… According to Martin Chulov; ISIS has grown from a ragtag band of extremists to perhaps the most cash-rich and capable terror group in the world with a $2 billion jihadist network. The scale of ISIS resources is unprecedented: A terrorist organization while ruthless, but still able to occupy large areas of territory, quickly… for example; it controls several major cities in Iraq, which it occupied in just three days, it holds parts of several other cities and continues to menace still other cities throughout Iraq and Syria: It’s quite an accomplishment… According to Michael Knights; some estimates of ISIS’s wealth are overstated, for example; the $2 billion estimate that’s been floating around is too high, but that’s not to say ISIS isn’t raking in a fair amount of cash– between $2 million and $4 million per day… ISIS is a wealthy terrorist movement or better yet an effective financial enterprise, which it run very much like a large-scale Mafia type protection rackets business across much of Iraq.