Swiss canton ends tax breaks for rich foreigners

[Judi Lynn]

Source: Associated Press

Swiss canton ends tax breaks for rich foreigners

By ERNST E. ABEGG – 20 minutes ago

ZURICH (AP) — What's love got to do with it when taxes are at stake?

Zurich voters broke with long-standing Swiss policy Sunday by ending tax breaks for wealthy foreigners like the American singer Tina Turner and the Russian billionaire Viktor Vekselberg.

The canton, which includes the exclusive "Gold Coast" along Lake Zurich, voted 52.9 percent to do away with the privileges. The rules will apply only to cantonal (state) and community taxes, not to federal taxes.

Switzerland has long attracted some of the world's richest people. Most of the country's 26 cantons offer highly beneficial flat taxes to wealthy foreigners.

Zurich's government and parliament opposed the change, warning it could prompt an exodus of rich foreigners who were interested in more than Alpine beauty alone. One Zurich resident, the German milk baron Theo Mueller, had threatened to leave if the initiative passed.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5jv8uG1ah1cCwV-0ivzFaw40bgfRwD967GMQ00

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(Anyone besides me think it's odd AP picked someone like Tina Turner as an example of Americans seeking tax breaks, rather than a CEO? In the grand scheme of things, she's not that wealthy.)

[Sarah Ibarruri]

1. YES! It's the first thing I noticed! They didn't pick any American corp zillionaires

See how they manipulate everything?

[Coventina]

2. Yes, picking on Tina is really low.

What she has she EARNED! Unlike many of the others who are enjoying the tax breaks (IMHO).

While I don't approve of tax exiles, I think the story focusing on Ms. Turner is pretty sickening.

[Lorien]

7. I think that she lives there because she loves Switzerland

and hell, if I had enough money I'd be there too! I absolutely adore that country!

[Coventina]

8. Well, I can't argue that! I've never been but it looks mighty nice.

I wasn't trying to criticize Tina, I love her. (In fact, my handle here "Coventina" is a reference to an inside joke I have with my siblings about worshipping Tina as our goddess - long story of no interest to anyone but ourselves).

Given what she's been through, I would find it hard to condemn her for living in Switzerland even if the ONLY reason was that she wanted to hang on to more of her hard-earned money.

[AnneD]

15. I was lucky enough to visit Switzerland.....

and swore that if I every won the lottery-I would live there. It is heaven on earth (but tilted at an odd angle). I went before Bush trashed the dollar.

Tina worked hard for her money and she can live where she damn well pleases. Not bad for a girl from Nutbush Tenn.

[NBachers]

10. Hardest Working Woman in Show Business

[AnneD]

16. ITA....

James Brown had nothing on her. I think she was better because she did it all in high heels!

[hughee99]

3. I figured it was because most Americans have heard of Tina Turner

while almost no one knows who the fuck Viktor Vekselberg and Theo Mueller are. If they wanted to, they could have mentioned Mark Rich as being one of the Zurich residents. I believe he still has his place there.

[DFW]

5. Rich was in the Canton of Zug

I know a local there, which is why I even know it is there.

The Cantons of Zug, in the German part, and Fribourg in the French-speaking part
used to have the reputations of being especially tax-friendly to foreigners, although
to some degree it was to attract foreign companies who ran their bank accounts through
those cantons without actually doing physical business there. Keep in mind that I heard
this back in the 1980s, and have no idea if the rules have changed since then. I suspect
that they have.

[hughee99]

6. My apologies.

I had heard he was on Lake Zurich.

I see that Zug is right next to Zurich. Maybe that's why I was confused.

[ima_sinnic]

4. the poor widdle rich people will stamp their feet and leave if they have to pay taxes?

may they find there is no place in the world where they don't have to contribute.

Fucking greedheads! Then people wonder why I "hate" rich people. They are the stinking greed-head, selfish scum of the earth.

[BlueMTexpat]

9. Yes, it's odd that they focused on Tina ... actually there are LOTS

of entertainers of all nationalities who have chosen to live in Switzerland because they have been able to negotiate certain tax breaks. Of course, the high quality of life there also has something to do with it. And yes, in comparison to CEOs, Tina and other entertainers, are nowhere near the same league ... they are barely blips in the grand scheme of things in comparison to Russian billionnaires, for example, who looted their country in the name of rampant and unfettered capitalism, all the while encouraged by the US. At least entertainers generally provide many with some pleasure.

Swiss federal taxes don't amount to much. It's the cantonal and communal taxes that are the big bringers-in of cash. They are based not only on income, but also on "wealth," defined generally as net worth (= total assets less total liabilities anywhere in the world), with certain types of holdings like IRAs excluded from the net worth calculations. IRAs are only considered in the equation when one makes a withdrawal, just as they are here, and the withdrawals are considered to be income.

For the record, the Swiss do not have national health insurance. They do have employer mandates, however, so if you are employed, your employer must provide health insurance, among other benefits, such as pensions, etc. Of course, the trick is to get employed there because it is very difficult to do so. Preference is given to Swiss nationals, of course, and more recently, bilateral agreements with the EU (Switzerland is not an EU member) have been signed that make it easier for EU nationals to be hired there, with reciprocity in the EU being given to Swiss nationals. The US has generally had a "special relationship" there, but more recently has not been quite on the same par as has the EU. Proximity has a lot to do with that, of course, but BushCo policies were generally very unpopular there, as they were throughout most of Western Europe. Generally, one must have a work visa that has been obtained by the employer BEFORE one arrives.

Sorry to go on at such length ... !

[ohio2007]

11. the journalist focused on Tina while few of the hyper rich would be known to his target audience

and many of them are middle eastern playboys living the double life .

short and to the point

[gula]

12. The wealth tax is minimal

and quite frankly I think it is a good idea. There are too many people in too many countries that pay no taxes because they can afford the "best" accountants.

[BlueMTexpat]

14. How "minimal" depends on the canton of residence.

For sure, some cantons are much more favorable to live in from a tax perspective, just are as some US states, e.g., FL.

Otherwise, I agree.

[Judi Lynn]

13. Thanks for adding information. Very helpful for those of us who haven't been there. n/t

[AnneD]

17. Our friends that live in Switzerland

all own their own businesses.

It is a most interesting place.