The Swiss government has rejected a proposal to impose a 50% inheritance tax on estates exceeding 50 million Swiss francs (about 56 million USD).
This proposal, put forward by the political group “Young Socialists,” aimed to raise funds for combating climate change. However, the government argued that such a measure could damage the country’s reputation and prove economically disadvantageous.
According to Bloomberg, the “Young Socialists” initiative has already gathered more than 100,000 signatures, allowing the issue to be brought to a national vote. However, the government warned that introducing a high inheritance tax could lead to an exodus of multimillionaires and billionaires, resulting in significant losses in tax revenues.
Tax authority research shows that the new tax could potentially generate around 4 billion francs for the budget. However, the government calculated that more than three-quarters of this amount would be lost due to the possible relocation of wealthy residents. Additionally, the reduction in the number of wealthy taxpayers would impact other state revenues, including taxes on income and wealth.
The initiative could reduce federal revenue, as well as the budgets of cantons and municipalities. It would also create undesirable economic incentives that would not contribute to climate protection, government representatives stated.
The final decision will rest with the voters, although the date for the vote has not yet been set.
