The Swiss have clearly rejected a 50 percent tax on large inheritances to fight the climate

Swiss voters on Sunday soundly rejected a proposal to introduce a 50 percent inheritance tax on inheritances above 50 million francs. According to early estimates by public broadcaster SRF, some 79 percent of voters voted against the initiative.

The proposal came from the Social Democrats' youth organisation JUSO and was intended to fund measures to mitigate the effects of climate change. However, it was expected to fail - polls showed in advance that more than two-thirds of respondents were against it.

The initiative was closely watched by bankers, who saw the vote as a test of the willingness of the Swiss to support wealth redistribution at a time when countries such as Norway are strengthening their tax policies against the wealthiest. Switzerland is "home" to some of the world's most expensive cities, and growing concerns about the cost of living are increasingly entering domestic politics.

Critics have warned that the tax could drive wealthy residents out of the country and ultimately reduce tax revenues. The federal government urged voters to reject the proposal, and the results of the vote made that clear.

(reuters, sab)