Switzerland has just shown why it is one of the most admired countries in the world: 78% of voters rejected a 50% tax on inheritances above CHF 50 million.
While the world tries to tax wealth, Switzerland chooses to create wealth.
The proposal sought to tax large inherited fortunes to finance "social projects." The Swiss voter understood something simple: where capital is punished, capital flees.
In previous years:
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Swiss voted to raise the retirement age.
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Rejected increasing paid vacation time.
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Consistently reject unrealistic public spending.
It's a culture of responsibility.
Direct result: public debt of only 37% of GDP, half the average of the European Union, which is above ninety percent.
At the beginning of the 20th century, Switzerland had a lower GDP per capita than Spain. It was a rural, poor country with no natural resources. Today, it has a GDP per capita of USD 104,000, among the three highest in the world.
The result? Governance, elite education, and absolute protection of private property.
The world thinks Switzerland got rich through banking secrecy. But the financial sector represents only about 10% of GDP.
Industry, on the other hand, accounts for almost 25%, nearly three times the proportion of France and Germany. Switzerland is, in fact, one of the most advanced industrial economies in the world.
From a landlocked and oil-free country emerged giants:
- Nestlé, the world's largest food company
- Roche and Novartis, two of the five largest global pharmaceutical companies
- Rolex and Patek Philippe, absolute icons of luxury
Swiss pharmaceutical exports alone exceed one hundred billion francs per year, more than the GDP of many countries.
Furthermore: Unemployment close to 2%. Inflation below 2%. Productivity among the ten highest in the world. Currency among the strongest and most stable.
Geneva is the city with one of the highest average global salaries, above CHF 7,000/month.
Switzerland leads rankings in quality of life, safety, and education.
Homicides: 0.3 per 100,000 inhabitants, almost ten times less than the US and thirty times less than Latin America. Public transport is punctual up to 97% of the time. Retirement with one of the most solid systems in the world and well-capitalized funds.
Besides the natural beauty.
WHY DO THE RICH CHOOSE SWITZERLAND?
The attraction doesn't stem from low taxes, but from the principles that govern Swiss society.
Absolute respect for property.
Real, not rhetorical, institutional stability.
Predictable politics, with decisions made by the people.
World-class education and security.
These foundations have created an environment where successful people not only invest, but choose to live, raise families, and build a legacy.