Swiss voters reject tax of up to 50% on large donations or inheritances, fearing exodus of wealthy

In a referendum, over 84% of voters rejected the “citizen service initiative” and none of the country’s 26 cantons, or states, came anywhere near voting in favor. Proposals need a majority of both voters and cantons to pass.

A separate proposal to impose a new national tax on individual donations or inheritances of more than 50 million francs ($62 million) was shot down by more than 78% of voters. The revenues were to be used to fight the impact of climate change and help Switzerland meet its ambitions to have net-zero greenhouse gas emissions by 2050.

Supporters of the national service plan hoped that it would boost social cohesion by adding jobs in areas like environmental prevention, food security and elderly care. But lawmakers opposed it, mainly for cost reasons and out of concern that it could hurt the economy by taking many young people out of the workforce.

The proposal came at a time when other European countries are finding ways to bolster their armed forces in the face of growing concerns about Russia’s potential threat beyond the war in Ukraine.

Young men in neutral Switzerland are already required to carry out military service or join civil protection teams. Conscientious objectors can do other types of service, and those who opt out entirely must pay an exemption fee. Each year, about 35,000 men take part in mandatory service.

The failed initiative would have required all Swiss citizens to do national service — women can currently do so on a voluntary basis — and applied the concept of national security to areas beyond military service or civil protection.

Its supporters pointed to “landslides in the mountains, floods in the plains, cyberattacks, risks of energy shortages or war in Europe” and said that their plan would mean everyone taking responsibility for “a stronger Switzerland that’s able to stand up to crises.”

The government countered that the army and civil defense have enough staff, and no more people should be recruited than are needed.

While compulsory military service for women might be seen as “a step toward gender equality,” it added, the idea would “place an extra burden on many women, who already shoulder a large part of the unpaid work of raising and caring for children and relatives, as well as household tasks.”

The government also opposed the proposal for a new tax on large donations or inheritances, arguing that approval could prompt some of the wealthiest in Switzerland — an estimated 2,500 people — to move elsewhere. Sums beyond 50 million francs ($62 million) could have been hit with a 50% rate.

Switzerland holds national referendums four times a year, giving voters a direct say in policymaking.