The Day Swiss Citizens Said NO to "50% Inheritance Tax" — Are Young People Facing a Crisis While the Wealthy Inherit Wealth? The Swiss Referendum Reflects the Intergenerational Gap

1. The "Small Referendum" That Captivated the World

A single referendum held in Switzerland, a country with a population of about 9 million, dominated the timelines of global markets and policymakers. The question was simple.

"Should a 50% tax be imposed on inheritances and gifts exceeding 50 million Swiss francs, to be used for climate change measures?"

Switzerland is known as the "sanctuary" of banking, asset management, and private banking, a country that prides itself on a stable tax system and politics. Whether such a country would choose "super-high" taxation on the ultra-wealthy was a litmus test for the world's wealthy and investment money.Reuters

When the results were revealed, they were overwhelmingly against the proposal. 21.7% in favor, 78.3% against. Pre-referendum polls predicted "two-thirds opposition," but the actual rejection surpassed even that.Wikipedia

On the same day, a proposal to mandate civic services (such as national defense and disaster response) for both men and women was also rejected, with 84% voting against it.AP News

2. The Tax Proposal: Targeting Those Inheriting Over 5 Billion Yen

The initiative was spearheaded by the youth organization of the left-wing Social Democratic Party, JUSO. Their campaign carried the following message.

"While the super-rich inherit billions, we inherit the climate crisis and rising living costs."

Specifically,

• Target: Inheritance and gift amounts exceeding 50 million Swiss francs (approximately 62 million USD)

• Tax rate: 50% on the excess amount

• Usage: Investment in climate change measures and energy transition projects

The proposal aimed to have households that have benefited more bear the costs of the climate crisis.InfoMoney

3. Why Was It Overwhelmingly Rejected?

The main arguments from the opposition can be summarized into three key points.

(1) Fear of Wealthy "Exodus" and Reduced Tax Revenue

Switzerland has attracted wealthy individuals from around the world with its relatively low tax rates and stable rules compared to other European countries. The introduction of a super-high inheritance tax could lead the wealthy to relocate to countries with more favorable tax regimes, such as Dubai or Singapore—a concern widely shared.The Washington Post

In fact, it is said that the top 10% of the wealthy in Switzerland support the majority of tax revenue. If they leave, even if climate funding increases in the short term, overall tax revenue could shrink in the medium to long term, potentially lowering the standard of national services.

(2) Preserving the "Predictability" of the Tax System

The business community has repeatedly emphasized that Switzerland's strength lies in its rules remaining largely unchanged for decades. Although the proposal was limited in scope, it featured a very high tax rate and would impact a significant life event like inheritance.

From family offices and law firms serving the wealthy,

• there were warnings about the uncertainty of whether past asset transfers would be taxed retroactively

• and how low-liquidity assets like unlisted companies or art would be evaluated.

These practical uncertainties were also highlighted.Financial Times

(3) The Fact That There Is Already a "Wealth Tax"

It is not widely known, but Switzerland already has a wealth tax at the canton level. This system imposes a tax of about 0.1-1% on net assets annually, making it one of the countries with relatively high "asset taxation" among OECD countries. However, when looking at the total tax and social insurance contributions as a percentage of GDP, Switzerland ranks 31st out of 38 countries, on the lower side.The Washington Post

In other words,

"We already tax the assets themselves. Adding a 'punitive' 50% tax rate at the moment of inheritance may be excessive."

This argument likely held some persuasive power among voters.

4. Social Media Reflected "Two Switzerlands"

The referendum became a major topic on platforms like X (formerly Twitter), Instagram, and TikTok. Summarizing actual posts, opinions were mainly divided as follows.

Voices in Favor:

• "The climate crisis and housing prices hit the younger generation harder. It's only fair for a small number of ultra-wealthy individuals to bear a bit more."

• "The target is just a handful of 'people who inherit billions.' They won't struggle even if slightly reduced."

• "The overwhelming opposition is proof of the close ties between politics and money."

Voices Against:

• "A 50% tax rate is almost like 'confiscation.' It undermines legal stability and damages Switzerland's brand."

• "If you send a message for the rich to leave, they really will, leaving only reduced tax revenue."

• "Climate change measures are important, but relying solely on the top 1% of the ultra-wealthy for funding is unsustainable."

Voices of Caution/Neutrality:

• "Addressing inequality is necessary, but this proposal is too crudely designed. A more moderate progressive wealth tax might be more realistic."

• "The system of deciding tax policy through referendums is democratic, but it's difficult for the general electorate to judge the technical details."

In hashtags, supporters used "#TaxTheRich" and "#ClimateJustice," while opponents used "#NoTo50Percent" and "#KeepSwitzerlandCompetitive," engaging in a "quote reply battle."

5. The "Victory in Defeat" for the Youth

Judging by the election results alone, JUSO's proposal was a historic defeat. However, they are already looking to the next stage.

• How much redistribution between the ultra-wealthy and other citizens is "fair"?

• How should the costs of the climate crisis be shared across generations?

In this sense, they succeeded in setting the agenda by posing these questions to the entire nation.

In fact, in Switzerland, multiple environmental and tax-related initiatives are being put to a vote in 2025 alone. In February, an environmental initiative advocating for an "economy that respects the planet's limits" was rejected, while in September, another real estate-related tax reform was approved, showing that citizens make detailed judgments on each proposal.Wikipedia

This rejection likely reflects a nuanced public sentiment that, while sharing concerns about climate and inequality, found the proposed solution too extreme.

6. The Gap and Resonance with Global Trends

Switzerland's decision is closely tied to the global debate on wealth taxes.

• Norway has recently strengthened its wealth tax, reportedly leading some wealthy individuals to move abroad.Daily Sabah

• In France, Italy, and the UK, the strengthening of taxation on the wealthy and the review of preferential measures are repeatedly debated.Financial Times

On the other hand, cities like Dubai, Singapore, and Hong Kong are competing with low tax rates and visa incentives to attract wealthy individuals and assets. In this "international competition over tax systems," Switzerland's decision can be read as a message of "no sudden changes in direction."

7. The Existence of Swiss Billionaires Advocating for More Taxation

Interestingly, after the rejection, some Swiss billionaires voiced that "strengthening taxation on the wealthy is still necessary."

Alfred Gantner, co-founder of the private equity giant Partners Group and a billionaire with an estimated net worth of $3.5 billion, stated in an interview that "the concentration of wealth has gone too far, and some redistribution is essential." However, his proposal is not an inheritance tax but a more moderate progressive wealth tax—for example,

• 1% on amounts exceeding 200 million francs

• 1.2% on amounts exceeding 500 million francs

• 1.5% on amounts exceeding 1 billion francs

—a model that taxes annual holdings.Reuters

He himself opposed the referendum, criticizing that "inheritance taxes have too many loopholes and only complicate asset structures." Even among the ultra-wealthy, opinions differ on "how to tax."

8. Viewing Switzerland's "Wealth Tax Turmoil" from Japan

The news also gained some traction on Japanese social media,

• "If even Switzerland is reluctant to tax the ultra-wealthy, it might be even harder to achieve in Japan."

• "Perhaps introducing a wealth tax like Switzerland would be simpler."

were some of the comments observed.

Japan already has a globally high inheritance tax rate (up to 55%), but wealthy individuals often employ tax-saving strategies through lifetime gifts or corporate schemes. The Swiss debate provides an opportunity to reconsider the differences in tax design,

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