Switzerland continues to attract large capital
In the context of the debt crisis, wealthy Europeans have become even more attracted by low inflation and low taxes in Switzerland, as well as its independent and long-term stable economic policy. In Switzerland, the maximum total taxation does not exceed 25 percent of profits, which is significantly lower than in most EU countries and the USA, as well as Russia. Income tax in Switzerland ranges from 22.2 to 42.3 percent depending on the region of the country.
Again, in this case, there is an obvious advantage for capital preservation compared to the vast majority of developed countries, especially given the trend of increasing 'wealth taxes' in them. In China, for comparison, income tax on over $3,000 per month rises on a progressive scale from 25 to 45 percent. In Russia, the income tax is 13 percent, but the relatively high overall level of taxation and increased inflationary and corruption risks nullify this factor.
Deflation in Switzerland over the past year was 0.14 percent. For comparison, in neighboring Germany inflation was 2.15 percent. The Swiss national currency has steadily strengthened over the past 10 years. The Swiss National Bank has generally successfully resisted sharp appreciation through FX interventions, and it is pursuing a similar policy now.
In the Swiss economy, transnational monopolies dominate, representing primarily the chemical, banking and insurance, electronics, and mechanical engineering industries. The transnational nature of these structures reduces macroeconomic risks associated with domestic demand dynamics, which again allows for effective regulation of economic processes.
But the global economy is changing, and Switzerland will have to face risks in the next 10-20 years. The fight for strong budgets forces leading countries to step up the fight against money laundering and its outflow to 'safe havens', including the Swiss financial system. The need to reduce developed countries' dependence on consumption as a share of GDP creates direct risks for Switzerland's services sector, which provides a third of its exports. Indirectly, the planned increase in investment in Switzerland's trading partner countries creates threats of increased competition for monopolies.
The strengthening of state regulation and planning, especially in the basic sectors of the economies of leading countries, which is planned based on the results of recent elections, will contribute to a reduction in the tax burden of the leading economies that are Switzerland's competitors on the world market.
_