On September 26, a vote will take place in which Swiss voters will decide whether the tax on the money received from the ownership of the company and investments will be increased.
The initiators of the change, a young socialist party, are proposing a tax rate of 150% on income earned from investments and company property.
According to the party’s assertions, the current progressive tax system is not good enough and, once introduced, the rich will pay more taxes and the rest less.
The details of the initiative are not fully understood, for example, what kind of income will be taxed, as well as the amount from which the tax increase begins.
The government has already spoken out on the plan: the federal council and parliament are advised to vote against it. Switzerland already has redistributive taxation and a wealth tax. In addition, the tax rate rises as income rises.
“Currently, the top 1% of earners pay 40% of Switzerland’s tax, a share far higher than the 10% of the revenue they earn. This means the average rate of tax paid by this group is already 6 times the rate paid by the other 99%.
In addition, Switzerland’s existing wealth tax and partial double taxation of dividends already make the country quite unattractive for entrepreneurs and wealthy residents, a group whose choice of residence is sensitive to tax rates. Because of the way unlisted companies are valued, Switzerland’s wealth tax can be a headwind for entrepreneurs. Shares in start-up companies paying founders subsistence salaries can lump founders with a significant wealth tax burden at a time when they’re struggling to ensure their companies survive and make ends meet” – write lenews.
Source: lenews
