Life in the Chocolate factory - Trouble in Paradise

Switzerland has an image of tranquillity, cleanliness, efficiency, etc., etc. But once you work here and see the day to day news you see that there are one or two 'issues' bubbling away.

I was watching a documentary last night on TSR (TV Swiss Romande) and it was talking about the battle between the cantons (like states) and Communes (like counties). It seems that they do not have a standard federal tax rate here and that each canton and commune is free to fix their own rates as they see fit.

O.K. So what's wrong with that you might say - perfectly reasonable idea. However, the devil, like most things, is in the detail.

It seems that there are certain cantons and communes that are considered 'prettier' than others (although the whole place is generally very attractive), and they set themselves up as a 'tax oasis' with degressive, not progressive taxation. I.E. The more money you have the less you pay!?

Needless to say the rich flock to these places like bees to honey, but it creates a lot of animosity as some of the 'oases' are micro-cities with few facilities that are next to normal large cities that have standard tax levels. In one case cited last night, thousands of people drive over the hills each day from their luxury retreats in nearby tiny Canton 'X' to larger Canton 'Y' to work but also to benefit from all the infrastructure, subsidised hospitals, subsidised arts, multiple govt. departments etc paid for by the less well heeled and it causes a lot of animosity as the rich are seen as getting a free ride on the working mans back. It doesn't help that one Canton is Swiss-German and the other is Swiss-Romande (French) and so you get a little bit of the 'Zurich (the eastern regional capital) is screwing us (Geneva - the western capital) over again' feeling.

If there is one thing that the Swiss take seriously it is money. As one resident put it last night, 'It's like someone coming into your house every week, eating all your food, drinking all your booze, monopolising all the women, maing a mess of the place and then leaving without paying or bringing anything.

The one side (the rich), say it is a healthy competition between Cantons and they are just making the most of the law as it is. The other side (the working Joes), say you should contribute your fair share to what you are obviously using.

The capital in Bern is still to rule on the whole 'flexible taxation' thing.

In the meantime, there are a lot of unhappy campers!