Swiss climate activists target the rich with new tax proposal

SWITZERLAND’S Young Socialists said they’ve collected enough signatures for a national vote on a new tax on the wealthy to cover climate change costs.

The group – the youth organisation of the Social Democrats, Switzerland’s second-largest party – has proposed a 50 per cent tax on inheritances exceeding US$59 million. According to a statement on Wednesday (Dec 27), this would generate around 6 billion francs (S$9.3 billion) a year for climate protection measures.

“Those who for decades have been jeopardising our natural resources for their profits should pay the price,” the campaigners said on their website. “Our initiative ensures that the climate crisis is paid for by those who profit from it!”

The group says it’s collected more than 130,000 signatures and plans to present them to federal authorities in early February. Once legally certified, this will trigger a plebiscite after government and parliament discuss the issue. The full process usually takes a number of years.

Right-wing lawmaker Thomas Aeschi said the new tax would scare away rich citizens, who would leave the country to avoid it. Speaking to Tages-Anzeiger, he cited the case of Norway, which faced an exodus of millionaires after raising wealth taxes. 

How to appropriately tax the rich is an ongoing discussion in Switzerland. In June, a narrow majority of voters in Geneva turned down a wealth-tax hike for millionaires, while a federal inheritance tax failed in a plebiscite in 2015. Currently, how bequests are taxed is decided locally by the country’s 26 cantons.

SEE ALSO

Sustainable sojourns in Switzerland

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Under Switzerland’s system of direct democracy, citizens vote a number of times a year on topics ranging from cattle farming to cash supply. While they can have a big influence on public debate, proposals don’t always make it to the ballot box. Instead, lawmakers often pass laws beforehand if they are likely to be supported by a majority of voters. BLOOMBERG