Home News Initiative 99%: A commission opposes the taxation of the richest

Initiative 99%: A commission opposes the taxation of the richest

by world today news

The National Council’s Economic Commission recommends that the latter reject the initiative of the Young Socialists, aimed at taxing the richest 1% of Swiss people.

Mattea Meyer, Zurich National Socialist Councilor, was speaking during the submission of the initiative on April 2, 2019 in front of the Federal Palace.

Keystone

The popular initiative “99%” of the Young Socialists, aimed at taxing the richest 1% of Swiss, could scare away great fortunes. The National Economic Commission recommends to its council to reject this text, without counter-project.

The initiative “lower taxes on wages, tax capital equitably” seeks to tax at 150% the shares of capital income above a defined amount. To avoid attacking small savers, the threshold from which the higher tax prevails would be set at 100,000 francs.

Nearly 5 to 10 billion francs could be redistributed by involving the richest 1% of Swiss people, according to the Socialist Youth. This sum would be used to reduce the taxation of people with small or medium incomes from work or to transfer payments in favor of social prosperity.

Risk of leakage

High incomes are already heavily taxed, argues the commission on Tuesday. A “yes” to the initiative could put off the rich foreign taxpayers, who would no longer come to settle in Switzerland.

In addition, investors could flee. But Switzerland needs these taxpayers. In addition, the text deprives SMEs and family businesses of funds that could no longer be invested to ensure the future.

Imprecise

In the opinion of the committee, the initiative is not precise enough. The draft does not define the amount of the exemption from which income is more taxed. The redistribution of revenue is also not indicated. The planned measures will therefore be difficult to implement. The fiscal sovereignty of the cantons would be hampered, specifies the majority.

The minority believes that the gap between highs and lows continues to widen. This creates economic problems and reduces purchasing power. There is a correlation between growing inequalities in income and the concentration of wealth, still believe the minority.

No counter-project

Finally, the committee refused, by 17 votes to 8, to develop an indirect counter-project. This would have planned to tax at 100% capital income exceeding a certain amount, instead of 150% according to the text of the initiative.

In the process, she also refused to follow up on a parliamentary initiative by Samuel Bendahan (PS / VD). The Vaudois wants a 70% tax rate to be applied for the portion of taxable income that exceeds 10 million francs.

Switzerland must remain an attractive center of establishment, underlines the majority. For the minority, this initiative would make it possible to fight against the imbalance in the redistribution of revenues.

(ATS / NXP)

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