On November 30, Swiss voters sent a clear message in a poll when they strongly rejected the proposal to apply a new inheritance tax rate targeting the super-rich.
The vote counting results showed that up to 78% of voters objected, much higher than the estimate of about 2/3 in previous polls. The rejected proposal involved a 50% tax on heirs of 50 million Swiss francs or more (equivalent to about $62 million) - the tax rate considered the strongest ever introduced in this country.
The vote received great attention from the international financial community, because Switzerland has long been considered one of the most stable financial centers in the world. Many experts consider this a "test" on public attitudes towards asset redistribution policies, in the context that many European countries are tending to tighten taxes on the rich. Norway is a typical example when it recently increased property taxes, causing some rich businessmen to leave the country.
The initiative in Switzerland was initiated by JUSO - a youth organization of the Social Democratic Party under the left-wing guidelines. With the catchph term "The super-rich inherit billions, but we inherit crises", JUSO wants to use revenue from the new tax to finance climate change response programs.
JUSO's argument highlights rising economic inequality in Switzerland, while living costs - especially in big cities - are increasingly beyond the means of many young families.
However, the opposition has issued a series of warnings about negative impacts if the tax is approved. Many economists say the 50% inheritance tax rate is too high, which could cause a wave of abandonment by super-rich families, leading to a decline in investment flows and weakening the attractiveness of the Swiss business environment.
According to them, taxing too much does not only not increase budget revenue but can also cause total tax revenue to decrease in the long term. The Swiss government and parliament are also in the same view, calling on voters to reject the initiative to avoid harming the economy.
With the overwhelming results of the poll, Switzerland has chosen to maintain the status quo rather than experiment with a bold tax policy. This vote shows that voters prioritize economic stability and national competitiveness over strong redistribution measures.
This development also reflects deeper divisions in Swiss society over the issue of property inequality - a topic that will certainly continue to be discussed in the coming years.
