Swiss Offer Millionaires a Haven Away from the Poor
June 22nd, 2009Via: Guardian:
The plans of a Swiss canton to attract the super-rich by offering them the chance to buy property in exclusive, previously out of bounds locations has sparked a political row and accusations that the country is encouraging apartheid of the rich and poor.
The canton of Obwalden is planning to launch “special living zones” for millionaires in an attempt to boost its tax take by luring the wealthiest residents. Like other cantons in the tax haven, Obwalden finds itself short of revenue because it has been competing with other jurisdictions to see who can offer the lowest rate of tax.
The result has been a drastic shortfall in tax revenues as people set up PO box companies to take advantage of the low rates, while contributing nothing to the local economies because they live elsewhere.
Obwalden’s answer is to lift construction bans on land reserved for agricultural use, offering the rich the chance to secure property on protected land, with the promise of spectacular views of lake and alpine landscapes.
Details of Obwalden’s plan, published in the Swiss press, suggest selling villas on an exclusive basis to those who pay high taxes or who create work in the area – “a sunny location, with low noise emissions, good amenities … as well as an unrestricted view that cannot be built on”.
The homes would be constructed on land not usually accessible to ordinary citizens, leading to accusations that the policy discriminates against less wealthy inhabitants while rewarding the rich.
Growth! More growth!
Those impertinent central cantons didn’t get game theory: now every other canton does the same or has to in some way. And shorter than long in the future the federal agencies regulate that (will need a constitutional change, though) and the Federal System has gone forever.
Really, i don’t know why they do this. There are many more ways to attract rich foreigners. E.g. with more law&order, clean streets or plain PR like Zurich did it wonderfully.
Mental note: Bring ski mask and lockpick set when visiting Obwalden Switzerland. 🙂 Thanks for advertising it guys. If it works, you’ll be the largest crime target in the world.
Like other cantons in the tax haven, Obwalden finds itself short of revenue because it has been competing with other jurisdictions to see who can offer the lowest rate of tax.
This is partly a glimpse at the nightmare of political decentralization: states forced to compete for productive citizens, instead of merely exploiting them.
Whats next, representative government?
Sounds like a Swiss version of the Walmart model. Har. Destroy land destined for agricultural use to attract tax revenues from the rich? Good luck.
What is Obwalden promising in terms of protection from the unwashed when they dream of a few drops of tax revenue from the uber wealthy?
Do these Obwalden officials understand that the rich pay their accountants large sums of money to avoid paying tax revenue to anyone, anywhere, at any time?
Get a grip on yourselves Obwalden. If I were going to destroy land to import tax revenues I’d get it in a contract, with a certain sum being paid in exchange for this “haven.”
Otherwise, Obwalden, imagine a long slow screw.