THEODORA PETER In spring 2024, the Young Socialists (JUSO) – the youth wing of the Swiss Social Democrats (SP) – launched an initiative proposing an additional inheritance tax on estates and endowments worth 50 million Swiss francs or more. JUSO says it wants to “make the rich pay for climate change”, adding: “The super-rich are destroying our future. With their private jets, superyachts and billion-dollar investments in polluting industries, they produce more carbon within a few hours than the average person would in their entire lifetime.” Those who inherit less than 50 million francs are not the target of the proposal. But anything over and above this amount would incur a 50 per cent tax, i.e. the state would take half of all the assets. According to the proposal, up to six billion francs in additional tax revenue would be raised every year as a result. Its supporters want the money to be spent on “socially equitable measures to fight climate change” and the “ecological restructuring of the economy”. JUSO President Mirjam Hostetmann explains that billions of francs in investment will be needed in the years ahead to combat climate change. “Without the super-rich paying their fair share, the wider population will have to foot the bill,” she says. Entrepreneurs threaten to leave Switzerland According to a study by the University of St Gallen, the initiative affects around 2,900 taxpayers across the country who own total assets worth 560 billion francs – or 20 per cent of all taxable wealth in Switzerland. The authors of the study believe that some of these high-net-worth individuals could leave Switzerland in order to avoid paying the tax, meaning that a lot less would go into the state coffers: up to a billion francs per year. Some of the super-rich who would have to pay the tax have reacted in horror. Business magnate Peter Spuhler, one of Switzerland’s richest people with an estimated wealth of four billion francs, calls the initiative a “blatant act of confiscation”. Spuhler, who is chairman of the board of directors of train manufacturer Stadler Rail, even warned in a newspaper interview that he would emigrate to Austria, where there is no national inheritance tax. In Switzerland, his eventual heirs would have to fork out at least 1.5 billion francs in inheritance tax if voters approved the initiative. Absurd, says Spuhler. “Look at my bank balance and you would be Should the super-rich bankroll the fight against climate change? The Young Socialists (JUSO) believe that people in Switzerland who inherit 50 million francs or more should pay a hefty tax on their estates to help fund the fight against climate change. Their controversial “Initiative for a future” will be put to voters on 30 November 2025. surprised. Nearly all of my wealth is invested in my companies and in other smaller firms.” He would have to sell his businesses to pay the tax. In the worst case, these would end up in the hands of foreign investors. Such fears are unfounded, say those who champion the initiative. Mirjam Hostetmann countered his remarks, pointing out that it would be possible to pay the tax in instalments or take out loans to cover the bill. Economist Volker Grossmann, who is a professor of economics at the University of Fribourg, disagrees that taking on new debt is problematic for family companies, provided business is going well. “The economic impact has been completely exaggerated,” he told the tabloid newspaper “Blick”. Taxes are not the only criterion for a location’s attractiveness – Switzerland also has other benefits. To emphasise their environmental motives, the authors of the initiative unveiled their proposal in 2022 on the dried-up bed of the River Emme. Photo: Keystone Swiss Review / October 2025 / No.4 20 Politics
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