Switzerland rejects 50% inheritance tax on ultra-rich, public broadcaster estimates

Switzerland on Sunday, November 30, clearly rejected a proposed 50% tax on inherited fortunes of 50 million Swiss francs ($62 million) or more, public broadcaster SRF said in a first results estimate, with an expected 79% of votes against the plan.

The proposal from the youth wing of the leftist Social Democrats, or JUSOs, aimed to fund projects to reduce the impact of climate change, was widely expected to fail, with over two-thirds of respondents against the proposed tax in recent polls.

Bankers have watched the vote closely, casting it as a litmus test of appetite for wealth redistribution in Switzerland, as other countries, like Norway, have beefed up their wealth tax or debated similar moves.

Switzerland is home to some of the most expensive cities on the planet, and anxiety about the cost of living has been gaining currency in local politics.

Critics of the initiative said it could trigger an exodus of wealthy people from Switzerland, reducing overall tax revenues. The Swiss government urged voters to reject it.