Brussels, 01/12/2014 (Agence Europe) -By 59.2% of the votes cast to 40.8%, the Swiss rejected the popular initiative launched by the Left aiming to abolish lump-sum taxation, known as 'End tax breaks for millionaires'.
Only the Canton of Schaffhouse took position in favour of abolishing the system, whereby foreigners who live in Switzerland but do not earn their living there pay a fixed amount of tax based on their living expenditure. The popular initiative aimed to tax such people on their income and assets. Certain Cantons, such as Zürich and Basel-Stadt, have already abolished the system.
In 2014, there were more than 5,600 cases concerned by the system. Opponents of the popular initiative stressed the considerable risk that the fortunes in question would move out of the country, resulting in losses in tax revenue. The Left is disappointed, but has pledged further initiatives. For its part, the Swiss Federation of Trade Unions laments the lost opportunity to “guarantee a bit more tax justice” (our translation). (EL)