Federal Council rejects popular initiative "Take the pressure off wages, tax capital fairly
Peter von Burg
At its meeting on 26 June 2019, the Federal Council dealt with the popular initiative "Relieve the burden on wages, tax capital fairly" and instructed the FDF to prepare a dispatch with a motion for rejection without a counter-proposal.
The popular initiative calls for higher taxation of capital income above an amount to be determined by parliament. The additional income should be used for reduced taxation of people with low or medium incomes or for transfer payments for the benefit of social welfare.
The Federal Council does not see any need for action in the sense of the initiative, as a noticeable redistribution is already taking place. An increase in the taxation of capital income would make Switzerland less attractive as a business location for people with high capital income. It would be uncertain whether the tax sensitivity of such persons would even lead to the additional income hoped for by the initiators.
The communication is available here.
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