Posted: Fri Mar 09, 2007 12:09 am Post subject: Why Rich Foreigners Love Switzerland
These people may pay a VERY low tax RATE. But they still pay $60,000 per year in taxes. How many of you pay that much??? And that doesn't include the other taxes they pay while living there. Socialists may call it unfair. But Switzerland is better off having these people pay a low tax rate then not having them live there......
Why do you suppose so many wealthy foreigners decide to make their homes in Switzerland? Well over 3,500 wealthy foreigners have taken advantage of individual fiscal deals offered by Swiss cantons (provinces), paying an average of CHF75,000 (US$60,000) each in tax on earnings of CHF300 million (US$240 million) annually. The system is called forfait and it is the envy of tax collectors all across Europe, even drawing the ire of the EU, which thinks low taxes are unfair.
Driven in large part by competition among the Swiss cantons, this system enables highly productive people to escape excessive taxation in their own nations.
The crowd of wealthy expats now includes French signing star Johnny Hallyday and U.K. pop star James Blunt as well as Michael Schumacher, the former Formula One race car driving world champion, and Boris Becker from Germany, the Grand Slam tennis champion, as well as rock star Phil Collins and Ingvar Kamprad, founder of the furniture chain Ikea, one of the richest men in the world.
And the low tax competition continued. At least 18 out of Switzerland's 24 cantons planned to cut rates of taxation in 2006, led by Obwalden, which cut corporate tax to 6.6% in January 2006, the lowest rate in Switzerland. Obwalden also cut tax for individuals earning over CHF300,000 (US$240,000)by 1% to 2.35% and reduced property tax.
But the Swiss government has stood firm. EU pressure on Switzerland to change its tax system has been firmly resisted by the Swiss government, with President Micheline Calmy-Rey telling the press whilst still Foreign Minister in December that there is "absolutely no room for negotiation," regarding Swiss tax laws.
We definitely agree with the statement by Jean-Daniel Gerber, head of the Swiss State Secretariat for Economic Affairs, who said:. "It's not a question of justice or injustice; there's no just tax." Amen!
The countries in Europe that are doing well are the ones with the best tax rates: Switzerland, Ireland, most of Eastern Europe. Ths socialist hellholes, like France & Germany, are the ones in deep trouble.
I don't think that citizenship is a requirement of the tax break - if I recall correctly, all male citizens of Switzerland must undertake basic military training, and thereafter remain as part of the militia.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum You can attach files in this forum You can download files in this forum