Swiss government fears wealth exodus with inheritance tax hike

Federal Council: Juso initiative could prompt wealthy people to move away Keystone-SDA

The Swiss government fears a proposed national inheritance tax on estates over CHF50 million could reduce overall tax revenues as wealthy people are likely to leave the country.

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Voters will decide on the proposal by the youth wing of the Social Democratic Party (Juso) on November 30.

+ Would a Swiss inheritance tax hike lead to a billionaire exodus?

Finance Minister Karin Keller-Sutter has presented the arguments against the Juso popular initiative.

The Federal Council believes the new tax would make Switzerland less attractive for wealthy people. If the richest people moved away, there would not only be less inheritance tax, but also less income and wealth tax.

The tax would also jeopardise jobs because companies could move abroad.

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The initiative calls for a new inheritance levy to pay for environmental protection initiatives. The government argues that it already provides CHF2 billion in subsidies every year.

Furthermore, the tax demanded by the Juso does not create any incentives for climate-friendly behaviour, said Keller-Sutter.

Translated from German with DeepL/mga

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