SwissInfo reports that the center-left government of social democrats is heading a campaign to end "unfair tax competition" as several cantons recently introduced lower tax rates on corporate income. These cantons enjoy the lowest corporate tax rates in the world. Subsequently, they attracted numerous multinational companies to set up their holdings there. As a result, the formation of human and investment capital soared up.
An attempt to pursue the policy of tax increases is a way to lower economic growth and output in the future. On the other side, pro-growth tax policy and the ability of cantons to set individual and corporate tax rates, raises personal and corporate incomes as tax burden reduces and competitiveness increases. It is highly unlikely for a political party to strognly support the policy which clearly undermines Switzerland's long-term competitiveness in the global economy.
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