Swiss inheritance tax proposal divides voters and sparks fierce business backlash
A controversial initiative, 'For a Social Climate Policy—Funded Through Fair Taxation (Initiative for a Future)', has sparked a heated discussions debate in Switzerland. The proposal, backed by the Young Socialists (Juso), seeks a 50 percent inheritance and gift tax on fortunes exceeding 50 million francs to fund climate measures. Business leaders, however, are deeply concerned and have launched a multi-million-franc campaign against it.
The initiative's parent party, the Social Democrats (SP), proposed spreading inheritance tax payments over annual installments, but this is unlikely to sway the outcome. Early opinion polls and a survey on the website of the initiative's opponents suggest a resounding 'no', with 73 percent of respondents rejecting it. Peter Spuhler, owner of Stadler Rail, threatened to relocate abroad if the initiative passes, igniting the discussions debate.
Business associations have warned against the initiative's adoption, with Swissmem framing the debate with an image of a meta bomb with a lit fuse. Business leaders are anxious due to a leftward shift in Swiss voters' tendencies, with recent referendums unsettling the business community. Even if the initiative is rejected, a strong showing could signal growing public sympathy for wealth redistribution and embolden the left. The declared campaign budget of the opposition is 3.67 million francs, nine times what the initiative's backers have at their disposal.
Despite the initiative's little chance of passing, business leaders are worried about the potential impact of even a slight inheritance tax increase on investment decisions and relocation plans. The initiative's backers argue that the funds raised would go towards 'socially just' climate measures, but the business community remains unconvinced.
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