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Sunday, 22nd of September, Geneva's plan to reduce taxation on business tools was soundly defeated, with 58% of the population voting against the reform in a referendum. This result highlights the reluctance of the people of Geneva to adopt tax measures considered to favor "rich taxpayers" at the expense of tax fairness. This vote comes at a time when the economic and social issues surrounding the taxation of entrepreneurs are increasingly being debated.
What are the consequences for the canton of Geneva and its taxpayers?
The rejection of the proposal to reduce taxation on entrepreneurs' work tools has significant repercussions on the economic attractiveness of the canton of Geneva in the Swiss context. Indeed, this decision could reduce Geneva's attractiveness to entrepreneurs, who could turn to other Swiss cantons, such as Vaud, Fribourg or Neuchâtel, where more favorable tax regimes are on offer. The government fears not only that it will discourage new entrepreneurs from setting up shop, but also that those whose companies are growing in value will leave.
A competitive challenge
Geneva, historically perceived as a dynamic economic center, will probably have to re-evaluate its tax strategy to remain competitive with other cantons with more attractive tax rates. For some, this rejection is a missed opportunity to restore Geneva's attractiveness.
Want to find out more? Read our previous articles on the subject:
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