Ticino approves lower taxes for the wealthy

>__High incomes in the Swiss canton of Ticino will in future benefit from tax relief. A corresponding amendment to the law was approved by voters on Sunday. Compensatory measures for planned pension cuts for cantonal employees were also approved.__

>With a voter turnout of 49.32%, 60,581 Ticino residents voted in favour of the new tax law and 45,908 against, according to the state chancellery.

>In addition to a reduction in the maximum income tax rate, the new tax law also adjusts inheritance and gift tax as well as the taxation of capital withdrawals from pension schemes.

>The new law aims to reduce the top tax rate in six stages by 0.5% per year until 2030 – from 15% to 12%. This will reduce the tax burden on high income brackets. Among other things, this should make the canton more attractive for top managers.

>The savings cuts announced at almost the same time as the debate on the tax reform were widely criticised by left-wing parties and trade unions, who said the rich were being rewarded while social benefits were being cut. The Social Democratic Party, the Greens and other left-wing parties therefore launched a referendum against the tax law amendment.

>__Compensation for pension cuts__

>The Ticino electorate also approved a second bill that provides for an amendment to the law on the cantonal pension fund.

>With 53,230 votes in favour compared to 52,169 against, voters narrowly approved compensation measures to cushion the planned pension cuts for cantonal employees. These include an increase in the retirement capital, which will be financed by employers and employees. The measures will cost the canton CHF14.6 million ($16.3 million) a year.

It’s their choice so… Only time will tell if it’s a good choice or a bad one.