Context

Switzerland must reduce its greenhouse gas emissions to net zero by 2050. This was decided by the electorate. The federal government currently has around CHF 2 billion available each year for measures that contribute to achieving this goal. These funds come primarily from consumption-based taxes on fuels and electricity.

The proposal

The initiative calls for more funding for climate policy. The money is to come from a federal inheritance and gift tax. Until now, only cantons and municipalities have had such a tax. The federal government would now levy an additional tax of 50 percent on a person's estate and gifts, with the first CHF 50 million being tax-free. Two-thirds of the revenue would go to the federal government and one-third to the cantons. According to the text of the initiative, the revenue from the new inheritance and gift tax must be used «to combat the climate crisis in a socially just manner and to restructure the economy as a whole as necessary to achieve this goal.»

Contents of the initiative

Federal inheritance and gift tax

The initiative aims to introduce an inheritance and gift tax at the federal level: if a person's estate and gifts together amount to more than CHF 50 million, the federal government will levy a tax of 50 percent on the amount exceeding CHF 50 million.

Earmarking of tax revenues

Two-thirds of the revenue from the new federal inheritance and gift tax would go to the federal government and one-third to the cantons. According to the text of the initiative, it would have to be used “to combat the climate crisis in a socially just manner and for the necessary restructuring of the economy as a whole.” The federal government and the cantons would have to regulate how the money is actually spent.

No exceptions

The initiative calls for “complete taxation.” It does not provide for any exceptions for widows and descendants, nor for donations to the public sector or charitable organizations. The text of the initiative also does not contain any relief for assets tied up in companies.

Measures against tax avoidance

To prevent the tax from being circumvented – for example, by moving away from Switzerland – the initiative requires the federal government to take measures against tax avoidance. It leaves open what these measures would be.

Start of taxation

The initiative requires that inheritances and gifts be taxed from the date of its adoption. This means that if a person dies on the day the initiative is accepted, their estate will be subject to federal inheritance and gift tax. However, the measures to prevent tax avoidance – e.g., by moving away – would only take effect once the implementing provisions come into force. According to the initiative, this will be the case no later than three years after acceptance.

Results

The proposal was rejected by the electorate and the cantons.

Voter turnout: 42.95 %
Yes votes: 21.72 %