The ultra wealthy have always found refuge in Switzerland. According to business magazine Bilanz, the aggregate fortune of its 300 richest citizens is 850 billion Swiss Francs, or little more than $1 trillion.
However, voters will cast their ballots on Sunday to decide on an inheritance tax that has angered them. The plan to impose a 50% tax on all gifts and inheritances above 50 million Swiss Francs is probably going to be rejected. According to a recent survey, support was only 30%.
The plan has unsettled wealthy people and family run businesses. Stadler Rail's creator and owner, Swiss billionaire Peter Spuhler, has threatened to leave the nation if the levy is passed. He told the Swiss daily Tagesanzeiger that because his family's fortune is invested in businesses, they would find it difficult to pay such a tax.
"Many individuals who would be impacted spoke with their tax attorneys and consultants, and they completed the necessary paperwork to ensure that this time of year, a week before the final vote, they are prepared to move out if necessary."
"If you target the super wealthy, they are like queens on a chessboard," stated Legge, who studied the tax's possible effects. They have a lot of mobility. He continued, "They have a ton of possibilities to maximize their taxes.
The idea has created "a certain uncertainty among family offices and has kept foreign capital holders away from Switzerland," according to Kurt Moosmann, head of the Swiss Single Family Office Association.
According to Legge, a 50% tax would probably result in a decline in tax collection. Approximately 2,000 persons, or 0.3% of Switzerland's population, would be impacted, he claimed, and they presently pay between 5 and 6 billion Swiss Francs annually.
Strong business lobby in Switzerland An inheritance tax is a "superfluous and damaging discussion," according to Economiesuisse.
It cautioned, "We are dependent on good tax payers to finance our state." Switzerland was "still very strong" at "finding the right balance between taxes and the right public services," according to Legge, despite competition from wealth centers in the Middle East and other European nations.
Giorgio Pradelli, CEO of Swiss private bank EFG worldwide: "If you look at the overall competitive landscape, Switzerland remains the No. 1 destination for international private banking and wealth management," in response to a question about whether affluent clients were afraid.
Our environment is incredibly robust and thriving. The country's left leaning Social Democrats youth section made the proposal. If the tax is successful, the proceeds will go toward funding climate change mitigation measures.
