Today, voters in New York City may elect a lunatic leftist as Mayor, following Chicago into the toilet of statism. Is that the most important election of 2025?
Later this year, voters in Argentina will decide in mid-term elections whether to give Javier Milei a governing majority in the legislature. Is that the most important election of 2025?
In November, Swiss voters will be voting whether to adopt a class-warfare nationwide tax on inheritances. Is that the most important election of 2025?
I’m not sure if there is a correct answer to these questions. For purposes of today’s column, though, let’s focus on the Swiss referendum. The good news is that the Swiss have a very good track record of making sensible decisions.
In 2001, the people of Switzerland voted by a 5-1 margin in favor of a spending cap.
In 2021, Swiss voters overwhelmingly rejected a referendum for higher taxes on saving and investment.
Heck, even the French-speaking regions of Switzerland are sensible.
But good voting habits in the past are no guarantee of good voting habits in the future. Based on excerpts from this report by Mercedes Ruehl for the Financial Times, people are worried.
The Alpine nation is due to hold a popular vote in November on the introduction of a federal tax on inheritances and gifts worth more than CHF50 million ($61 million). …the proposal does not include an exemption for spouses or direct descendants. The looming vote comes after the UK sparked a rush for the exit among wealthy foreigners by making the global assets of non-domiciled residents liable to inheritance tax – a move it is now considering reversing. Meanwhile, jurisdictions such as Dubai and Italy have stepped up efforts to lure the rich. …The new tax was proposed by the far-left Young Socialists party in 2022 as a way of raising money to tackle the climate crisis. Under Swiss law, such proposals go to a public vote if they are backed by 100,000 signatures. …The proposed tax would also affect those running the thousands of small- and medium-sized businesses, as well as entrepreneurial families, spread across the country, many of whom have their money tied up in the business… The new levy would place Switzerland above other jurisdictions such as Italy where inheritance taxes range between 4% and 8%, or Dubai and Hong Kong which have no inheritance or gift tax. Business lobby group Economiesuisse said this week that the initiative “endangers Switzerland’s position as a reliable and stable business location internationally”. …The federal council, the country’s executive branch, has rejected the initiative, as have the two houses of parliament.
Sadly, some damage already is occurring.
Lombard Odier had “seen Swiss-based families that have decided not to take any risk and to relocate ahead of the vote taking place”, while overseas clients had decided not to move to the country… Another Zurich-based private banker said a top client had relocated to Liechtenstein ahead of the vote.
Since Liechtenstein is also a sensible nation, I certainly can understand why successful people think it’s a good place to live.
But hopefully Swiss voters will avert any possible exodus by delivering a crushing defeat to the class-warfare referendum.
There are very few countries in the world with good public policy. Switzerland is one of them (see here and here), and it would be great if it continued to be a role model.
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