Need for Plan B after Swiss voters shoot down corporate tax reform plan

Zurich

THE Swiss government must come up with a new plan and figure out how to limit economic fallout after voters rejected its bid to reform corporate taxation to keep the country internationally competitive.

Because Switzerland needs to end its practice of giving thousands of multinationals tax breaks, the government will have to concoct a Plan B to prevent their moving abroad. Their departure would cause a drop in tax revenue and stunt economic growth.

The government is at pains to find a solution at a time when countries such as the US are seeking to gain a competitive edge with their own business tax reductions and after a strong currency-induced slowdown in economic growth…