Swiss voters reject proposed tax on super rich

ZURICH: Switzerland on Sunday overwhelmingly rejected a proposed 50 percent tax on inherited fortunes of 50 million Swiss francs (USD62 million) or more, with 78 percent of votes against the plan, an outcome that even exceeded the two-thirds opposition indicated in polls.

Bankers have watched the vote closely, casting it as a litmus test of appetite for wealth redistribution in Switzerland, as other countries, such as Norway, have beefed up their wealth tax or debated similar moves.

Switzerland is home to some of the world’s most expensive cities and anxiety about the cost of living has been gaining currency in local politics.

The proposal from the youth wing of the leftist Social Democrats, or JUSOs, aimed to fund projects to reduce the impact of climate change. “The super rich inherit billions, we inherit crises,” they argued.

Critics of the initiative said it could trigger an exodus of wealthy people from Switzerland, reducing overall tax revenues. The Swiss government urged voters to reject it.