Swiss Canton votes for 1.8% Flat Tax

Yes, you read it correctly, 1.8%. That's One Point Eight Percent.

More than 90 percent
of voters in the Swiss Canton of Obwalden have voted for a flat tax of
just 1.8 percent. This is positive news for tax competition within
Switzerland, and it doubtlessly will put even more pressure on Europe’s
welfare states to reform oppressive tax regimes. Presumably voters in
other Cantons will now petition for a chance to vote for low-rate flat
tax systems, and maybe it is just a matter of time ‘til one of them
decides to completely eliminate the income tax. Swissinfo reports:

Obwalden has become the first Swiss canton to adopt a
flat income tax rate, with more than 90 per cent of the electorate
voting in favour of the move. The decision, announced by the
authorities after a vote on Sunday, comes after a court ruled the
canton’s previous degressive tax model unfair. From January
Obwalden will impose a rate of 1.8 per cent on all categories. The new
model also exempts the first SFr10,000 ($8,700) of income from
taxation, a measure designed to benefit those on lower incomes the
most. …In Switzerland there is high competition among the cantons to
set the lowest tax rates to attract wealthy individuals and companies.
…European neighbours have frequently expressed outrage that their rich
citizens are opting to empty their pockets into Swiss coffers rather
than their own. But Switzerland has defended its position as providing
healthy competition.

(source)

As Bishop Hill says: One of the main barriers to the introduction on flat tax regimes in the
developed world has been the argument, supported by bodies like the
OECD, that this kind of system would not work in developed economies.
We're about to see this argument tested empirically for the first time,
and I've no doubt that the naysayers are going to be proved
resoundingly wrong.

No doubt Libertarians everywhere will be watching this experiment very closely.

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About IanPJ

Ian Parker-Joseph, former Leader of the Libertarian Party UK, who currently heads PDPS Internet Hosting and the Personal Deed Poll Services company, has been an IT industry professional for over 20 years, providing Business Consulting, Programme and Project Management, specialising in the recovery of Projects that have failed in a process driven world. Ian’s experience is not limited to the UK, and he has successfully delivered projects in the Middle East, Africa, US, Russia, Poland, France and Germany. Working within different cultures, Ian has occupied high profile roles within multi-nationals such as Nortel and Cable & Wireless. These experiences have given Ian an excellent insight into world events, and the way that they can shape our own national future. His extensive overseas experiences have made him all too aware of how the UK interacts with its near neighbours, its place in the Commonwealth, and how our nation fits into the wider world. He is determined to rebuild many of the friendships and commercial relationships with other nations that have been sadly neglected over the years, and would like to see greater energy and food security in these countries, for the benefit of all. Ian is a vocal advocate of small government, individual freedom, low taxation and a minimum of regulation. Ian believes deeply and passionately in freedom and independence in all areas of life, and is now bringing his professional experiences to bear in the world of politics.
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