People just dont realize how bad that would be for CH as a finance hub. These taxes also always fail basically. Look at Sweden on what that did there.
Companies will just leave/do business outside CH as a consequence.
And swiss companies that stay will be less competitive.
Short term a little extra money, longterm terrible for everyone involved.
I feel like itâs really hard for people to understand the impact, they just think all those transactions are useless so it doesnât matter.
HFT and most financial actors have a pretty bad reputation, so it doesnât help (even when they actually improve things, like extra liquidity/lower spread/more stable markets).
(and as you mention, finance actors can just move elsewhere)
Swiss business model is based on services⊠so I think this kind of taxation is not going to happen.
Already the ETF industry moved to IRELAND due to the Swiss WHT & CH not able to get same deal with US for ETFs
BTW. Dont we already have Stamp duties? CH govt is getting more revenue vs Swissquote when people buy / sell ETF leaders.
Itâs surprising to me that across party lines people have the financial transaction tax in the top three of desired measures to generate more income at the federal level. Again from the sotomo study:
This could tempt say, the SP and the Greens to launch an initiative to introduce such a tax as they could hope for votes even from the SVP.
Just a gut feeling, but I believe âthe peopleâ just in general are suspicious of banks, the âfinance industryâ etc. and recent events like Credit Suisse f-ing up and UBS buying them very cheaply while risks were âexternalizedâ to Switzerland (i.e. tax payers) didnât help with this.
The people might want to âstick it to the manâ without realizing theyâre probably taking a shot at their own foot.
This documents the recent decision by the federal council why they donât want to introduce further financial transaction taxes and lists the ones that were proposed in 2021 by but rejected on Oct 9 2024:
Finanztransaktionssteuern können namentlich auf Wertschriftentransaktionen (Emission und Handel von Wertschriften), auf Kredit- und Einlagetransaktionen im ZinsdifferenzgeschÀft der Banken und auf Devisentransaktionen erhoben werden. Die Schweiz kennt mit der Emissions- und der Umsatzabgabe bereits heute zwei Finanztransaktionssteuern
Edit:
I doubt, though, that the average voter will ask your question what the Finanztransaktionssteuer actually is (and I would also claim that the average participant in the referenced sotomo study did not ask the question).
I think in the average voters mind itâs a tax âthat financial institutions and the bankers making the big moneyâ will pay. Hence the broad support across party lines to introduce such a tax.
Itâs interesting how everyone goes after banks and financial institutions without thinking too much in detail.
Anyways thanks for sharing the data
Itâs interesting how people react to various things and how difficult the job of politicians actually is to make reforms
The Swiss Federal Council is planning to increase taxes on withdrawals from pension funds and private retirement accounts (Pillar 3a), sparking significant debate. Experts and financial planners are advocating for a reform in how pension funds are taxed, proposing a unified, one-time taxation system for pension capital.
Key Points:
Proposed Tax Changes: Currently, pension withdrawals are taxed at a lower, privileged rate separate from regular income. The Federal Councilâs proposal would eliminate this advantage, potentially discouraging savings in Pillar 3a and pension funds.
Rising Capital Withdrawals: Many retirees prefer withdrawing their pension funds as a lump sum rather than receiving a lifetime annuity, partly due to tax benefits. Capital withdrawals rose from CHF 6.3 billion in 2015 to CHF 14.8 billion in 2023.
Expert Proposal: Specialists Reto Spring and Reto Leibundgut suggest a one-time, flat tax on pension capital (e.g., 10%) upon retirement. This tax would simplify the system, eliminate regional differences, and prevent loopholes for high earners.
Simplification Benefits: Under this system, remaining funds would be tax-free, whether taken as a lump sum, annuity, or a combination. This would level the playing field, reduce tax-related mismanagement, and lower retireesâ tax burdens.
Challenges: Critics argue that the transition could lead to a rush to exploit the old systemâs benefits. Additionally, low-tax cantons might lose out under the proposed changes.
Potential Impacts: The reform could make lifetime annuities more attractive again, ensuring retirees have stable, lifelong income. It also aligns with constitutional requirements to provide adequate retirement income.
Supporters of the reform believe it would simplify taxation, promote fair treatment across income groups, and reduce the risk of retirees exhausting their savings prematurely. However, opposition may arise from financial advisors whose business models rely on promoting capital withdrawals over annuities.
A flat tax would be beneficial for people with a big pillar 2/3a, no?
I donât understand the âsimplification benefitsâ: what exactly would be tax-free? No wealth tax for withdrawn pillar 3a and pilla 2 lump-sum? No income tax on pillar 2 pensions?
Yes, no progressive tax on capital withdrawal is how I read the proposal. Once withdrawn, it would be taxed as wealth â I donât see anything stated that says otherwise. And yes, no income tax on pillar 2 pension.
They really are continuing to try to sabotage the pillars.
I will continue to not pay into 3a and limit 2nd pillar as much s possible. Really annoying that my company doubled our minimum plan and I now have to pay a lot more into 2nd pillarâŠ.
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