Swiss banker says super-rich tax proposal is ‘Nuclear Bomb’ for Switzerland

A top Swiss banker, Frederic Rochat, has warned that a proposed tax on the super-rich could be “extremely dangerous” for Switzerland. The tax, suggested by the Young Socialists (JUSOs), the youth wing of the Social Democrats, would impose a 50% tax on inheritances and gifts over 50 million Swiss francs (about $59.3 million).

The proposal has caused concern among wealthy clients, with many considering leaving Switzerland if the tax is implemented. The referendum on this tax is expected to take place by late 2026, as JUSOs have gathered enough signatures for a public vote. They believe the super-rich should contribute more to fight climate change. However, the Swiss government opposes the tax.

Rochat, a managing partner at Lombard Odier, a private bank that manages around 320 billion Swiss francs in assets, expressed his concerns in Zurich. He said the proposal is creating uncertainty and making people think about “contingency measures,” like moving out of Switzerland. He also described the initiative as “incredibly un-Swiss.”

Rochat emphasized that Switzerland’s economic success depends not only on big companies but also on small and medium-sized businesses (KMUs) that export globally. He believes the proposed tax could harm these businesses if their owners decide to leave the country.

The value of $1 is equal to 0.8431 Swiss francs.

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