Switzerland, the mecca of millionaires, the country with low taxes and extremely favorable conditions for doing business, is no longer the same, writes Bloomberg.
The reason is the proposal to impose a 50 percent tax on any inherited wealth exceeding 50 million Swiss francs.
More than half of the business owners, whose fortunes exceed this amount, have already threatened to leave the country, the agency wrote, referring to the results of a survey by the audit consulting company PwC.
In total, about two and a half thousand rich people with a fortune of over 50 million francs live in the country. At the same time, they annually contribute five to seven billion to the country’s budget, which is about six percent of collected taxes on income, profits and capital gains.
The proposal to introduce this tax was made by the youth organization “Young Socialists of Switzerland”, linked to the local Social Democratic Party. A final decision on it will be made in a national referendum, but even discussing such an idea poses a threat to Switzerland’s reputation.
Many developed countries have fairly strict inheritance tax legislation. In South Korea, the family of the son of Samsung founder Lee Kun-hee has been selling stocks and even paintings by Picasso and Monet for several years to meet such a payment.
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