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The daily newspaper »Blick« took a closer look at the distribution of wealth in Switzerland - and made an astonishing discovery in Schwyz and Zug: The tax competition between the different parts of Switzerland has led to a remarkable density of millionaires in the two cantons (click here for Report).
In Zug there are now 132 wealthy millionaires for every 1,000 taxpayers.
In other words: every eighth inhabitant is a millionaire.
The situation is similar with Schwyz: there are 125 millionaires for every 1,000 taxpayers.
To put it into perspective: across the country, the average in Switzerland is 62 millionaires per 1000.
The rise of the old almshouses
The differences in taxation can be significant.
A top manager with an annual salary of five million francs and a fortune of 50 million francs would have to pay around two million in taxes in Bern, according to Blick.
If, on the other hand, he moves his place of residence to Zug, only a little more than half is due.
These statistics are also remarkable because decades ago Schwyz and Zug had a reputation for being among the poor houses in Switzerland.
However, both cantons have succeeded in attracting companies and wealthy citizens with low taxes.
Both regions are now among the wealthiest in the country.
The two cantons have shown that tax competition works well within Switzerland, says Christoph A. Schaltegger, Professor of Political Economy at the University of Lucerne.
It gives "remote and structurally weak regions the opportunity to assert themselves against attractive metropolitan areas," said Schaltegger the "Blick".
He cites Zurich as an example.
The city has a lot to offer in terms of quality of life.
If taxes were lowest here, hardly anyone would want to live in Central Switzerland anymore.
"The gap between town and country would widen, the periphery would be left behind."
trembling
