Switzerland has rejected wealth taxes: Westminster should take note |
Swiss voters have overwhelmingly rejected a proposed 50 per cent inheritance tax, proving that individuals in a democracy understand that confidence in a jurisdiction can evaporate quickly, says Tim Focas
Swiss voters have issued one of the clearest democratic verdicts on wealth and capital in recent memory. Last month, more than eight in ten rejected a proposal to impose a 50 per cent federal inheritance and gift tax on estates above 50m Swiss francs. The scale of the defeat was so emphatic that it can’t be dismissed as a quirk of Swiss politics. It is hard empirical evidence about where a mature, globally exposed economy believes long-term prosperity actually comes from. The UK government, seemingly caught between its instinct to find extra money for those on welfare and its temptation to squeeze middle and high earners ever harder, should sit up and take note.
Switzerland has always treated capital as something to be welcomed rather than corralled. Its system rests on competitive cantonal taxation........