The “99 per cent initiative”
Should tax on capital income increase?
Voters on 26 September will answer this question, posed by the Young Socialists in their “99 per cent initiative”. The electorate must decide whether tax on capital income such as interest, rental income, and dividends should be one and a half times higher than regular income tax, albeit with a tax-exempt annual personal allowance (100,000 Swiss francs, say the authors of the initiative) applying to this arrangement. The extra revenue would be used to ease the tax burden on low-income earners, although social welfare in areas such as education and healthcare would also benefit.