78% vote against tax on large inheritances

In a referendum this Sunday (30), 78.2% of Swiss voters rejected the creation of a 50% tax on all inheritances and donations exceeding 50 million francs (around 53 million euros), aimed at taxing large fortunes with the aim of raising more resources for the fight against climate change.

The initiative, promoted by the youth wing of the Swiss Socialist Party, did not receive support in any of the country’s cantons, according to the final count.

A Parliament very divided between conservatives, socialists, liberals and Christian Democrats, as well as the coalition government they form, recommended voting against this new tax, fearing that the measure would encourage large fortunes to leave the country.

Currently, there is no tax on inheritances and donations at the federal level, although it exists in almost all cantons of the country, with percentages that vary greatly depending on the location, but which often exempt spouses and direct descendants from paying them.

With a tax like this, according to its promoters, “it would be possible to combat the climate crisis in a socially fair way and allow the transformation of the entire economy necessary for this objective”.

It is estimated that this new tax, with no exemption for spouses and descendants or for donations to public institutions and organizations, would have affected around 2,500 taxpayers in Switzerland with fortunes estimated at more than 50 million Swiss francs.

Although, in theory, an increase in tax revenue was expected, according to different calculations, between 4 and 6 billion francs per year (4.2 to 6.4 billion euros), the Ministry of Finance warned that, in the medium term, it could lead to losses due to the feared departure of large fortunes from the country.

Another concern was that “the new tax could dissuade others from settling in Switzerland”, a place chosen for decades by tycoons, renowned artists and personalities from other countries to settle.

Proponents of the initiative stated that only the 300 richest fortunes in the country have assets worth almost 900 billion euros, almost equivalent to the national GDP, and that in 80% of cases they come from inheritances.

Furthermore, they pointed out that “these inherited millions cause great harm through environmentally damaging investments, private jets, yachts, and the purchase of political power and influence.”

“A Swiss ‘super-rich’ produces more carbon dioxide in just a few hours than another average-level person in his entire life,” they stated, adding that, while emissions per inhabitant have been steadily decreasing over the last 30 years, they have increased by 30% among those with the largest fortunes.