Swiss voters reject taxes on super rich, women’s draft

Swiss voters on Sunday overwhelmingly rejected a proposed 50% tax on inherited fortunes of 50 million francs ($62 million) or more, with 78% of votes against the plan, which surpassed the two-third opposition indicated in polls.

Bankers have watched the vote closely, casting it as a litmus test of appetite for wealth redistribution in Switzerland, as other countries, such as Norway, have beefed up their wealth tax or debated similar moves.

Switzerland is home to some of the world's most expensive cities and anxiety about the cost of living has been gaining currency in local politics.

The proposal from the youth wing of the leftist Social Democrats, or JUSOs, aimed to fund projects to reduce the impact of climate change. "The super rich inherit billions, we inherit crises," they argued.

Critics of the initiative said it could trigger an exodus of wealthy people from Switzerland, reducing overall tax revenues. The Swiss government urged voters to reject it.

In Sunday’s referendum, over 84% of voters also 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.

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."

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