Jean-Philippe Delsol pointed out on a recent article the problem of democracy in Europe. Instead of having Nanny-States trying to control its people, let the people speak its own mind.The Swiss referendum on executives’ high wages is the perfect example of a people using Democracy as it should without being monitored by political elites.
After being seriously blamed by Italian Minister of finances Giulio Tremont last month, Switzerland finally finds itself largely approved on its private savings policy in the recently revealed by the EU Commission report on enforcement of taxation on savings regulation. As a matter of fact, France is the only EU country to accuse Swiss banks to implement mechanisms allowing some of the savings on Swiss bank accounts to avoid taxation in accordance with the agreement signed with the EU in 2004. The conflict opposing Switzerland and the EU on savings taxation lasts from several years now. Here is a brief history of the issue by Pierre Bessard, IREF fellow.
Abstract : Switzerland provides a potential laboratory for testing various hypotheses connected with tax competition because of its extremely decentralized fiscal system. Twenty-six cantons (some of them extremely small) have retained the ultimate power of deciding tax questions, and hence not only to limit the Federal level of the State to about 1/3 of total public expenditure, but also to retain absolute power to set their own levels of taxation. Furthermore, citizens can launch referenda on tax issues at any level of government.