The Swiss should vote on a capital tax reform plan


Activists claim that 99% of taxpayers shoulder the burden of Switzerland’s richest citizens. © Keystone / Peter Klaunzer

The left-wing Young Socialist group has deposited the necessary signatures to force a national vote on its proposal to increase the tax on capital income in Switzerland.

This content was published on April 2, 2019 – 2:04 PM

The initiative aims to tax dividends and interest on wealth by a factor of 1.5 compared to ordinary income tax.

Campaigners argue that the wealth gap between the rich and the middle income has widened dramatically, not least due to weak tax competition between the 26 cantons that collect taxes autonomously.

“It’s time to put in place a fair tax system. Ninety-nine percent of the population must earn a living to earn a living. They work for the richest 1% of citizens, ”said Tamara Funiciello, president of the Young socialistsExternal link, Tuesday.

According to the initiative committee, the additional revenues should be used to reduce the tax burden on low and middle income.

The group said it collected more than 134,000 signatures during its campaign for tax justice, which began in October 2017.

Parliament has yet to debate the initiative before the government sets a date for a vote.

Retirement benefits

In addition, a popular initiative has been launched to overhaul the compulsory occupational pension scheme.

Activists, mainly right-wing and center-right politicians, want to introduce a flexible minimum interest rate on accumulated retirement capital, removing the current rate set at 6.8%.

The aim is to adapt pension benefits and the retirement age to general life expectancy in order to create a “sustainable and fair system”, according to the initiative committee.

She has 18 months to collect the necessary signatures to force a national vote, following the publication of the Federal Chancellery initiative textExternal link.

Compulsory occupational pension provision is part of Switzerland’s three-tiered social security system, but experts have warned that the growing number of older people is forcing the younger generation to fund pensions.

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