The Federal Council rejects 99-percent-Initiative

The Parliament can decide about the 99-percent-the Initiative of the young socialists (Juso). The Federal Council approved on Friday the Embassy of the people'

The Federal Council rejects 99-percent-Initiative

The Parliament can decide about the 99-percent-the Initiative of the young socialists (Juso). The Federal Council approved on Friday the Embassy of the people's desire. It recommends that the Initiative without a counter-proposal to reject.

The people's initiative, "wages relieve, capital fair tax" (99-percent-Initiative) is to require that the richest one percent of the population is taxed in the capital income such as interest and dividends is stronger. 109'332 signatures for a state Initiative to get taken care of.

Specifically, the tax on capital income such as interest and dividends of one and a half Times as much as labor income. An exemption would apply. How much would it be, leaves open the text of the Initiative. The Juso imagine a limit of about 100'000 Swiss francs per year.

Switzerland as a model

The Federal Council may be said to the 99-percent-the Initiative of the Juso nothing and sees no need for action, as he had already in the last summer reported. In the adoption of this Embassy it lists his arguments against the Initiative. In an international comparison, the income before taxes and transfer payments in Switzerland were evenly distributed, he writes. Thus, the Redistribution is lower than in other countries.

redistribution, would be redistributed in the course

in Addition, in Switzerland, even today, billions of Swiss francs, including through social transfers such as pensions or subsidized Premiums, as well as progressive income and wealth taxes.

The proposed Instrument for the reduction of income inequality is, according to the Federal Council, moreover, not very precisely, because the higher taxation refers primarily to the type and not on the amount of the income.

Lower wages

"A stronger taxation of capital income would deteriorate the attractiveness of Switzerland, a negative impact on capital formation impact and thus in the medium term, the people reduce economically available capital", concluded the Federal Council concludes. Such developments would have a negative impact on wages.

Finally, the Federal Council criticises the fact that the Initiative required Expansion of the transfer benefits would not be determined by demand considerations, but by a highly fluctuating tax revenues on capital income.

Unclear effects

leaves the Federal Council in the Embassy, the question of the financial consequences of the Initiative. This could not be estimated, he writes. On the one hand, the data basis is lacking for this, on the other hand, the embodiment could be a possible implementation of the Initiative and the behavioral adjustments of the economy to estimate the actors. Because capital income tax is very sensitive, is expected to arrive by the Initiators and initiators hoped for more income is barely enough in this amount. Thus, the intended redistributive effect will be undermined. (sda)

Created: 06.03.2020, 12:55 PM

Updated Date: 06 March 2020, 12:01

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