Swiss Voters Reject Major Wealth Tax Proposal

Swiss voters overwhelmingly rejected a proposal to impose a 50% tax on inherited wealth above 50 million Swiss francs ($62 million), according to early projections released by the national public broadcaster. The initiative was defeated by an estimated 79% of voters.

The proposal, introduced by the youth wing of the left-leaning Social Democratic Party (JUSO), sought to use the revenue to fund climate-related projects. But polls had long suggested the measure faced steep opposition, with more than two-thirds of respondents indicating they were against the idea.

Bankers and economists closely watched the vote as a signal of Switzerland’s willingness to embrace wealth-redistribution policies, at a time when countries like Norway have strengthened or debated similar taxes. Switzerland is home to some of the world’s most expensive cities, and concerns over rising living costs have increasingly shaped domestic politics.

Critics argued the proposal would drive wealthy individuals out of the country, ultimately reducing tax revenues. The Swiss government also urged citizens to vote against the measure for the same reason.

Earlier this year, Swiss voters approved an additional month of pension payments for seniors, a decision driven by cost-of-living concerns despite warnings about its financial burden. Had the wealth tax passed, it was projected to generate roughly 4 billion francs in annual revenue.

Miriam Hostettmann, head of JUSO, defended the initiative, saying wealthy households contribute disproportionately to climate change due to higher luxury consumption. She noted that the richest ten families in Switzerland produce as many emissions as a large segment of the population.

But Finance Minister Karin Keller-Sutter countered last month that the measure would “significantly undermine Switzerland’s attractiveness for high-net-worth individuals.”