Last week, Switzerland informed (or perhaps reminded) the world that efforts to tax extreme wealth shouldn’t start with a knockout punch attempt.
Swiss voters rejected a plan to impose a 50% inheritance tax on estates worth over 50 million francs ($62 million). The results weren’t close; 78% of voters said no to the proposal, which failed by an even steeper margin than a similar initiative in 2015.
The tax would have affected just 0.03% of the population, raised billions, and funded climate policy. But instead of sparking a movement to address wealth concentration, it triggered billionaire exit threats and the specter of economic ruin.
The Swiss left came in too hot. The 50% rate was a bold opening bid for a wealth tax, and it handed opponents an easy target and all the rhetorical ammunition they needed. Detractors could frame the tax as an existential threat to family businesses and, by extension, national competitiveness—even if the reality would have been more modest.
The failed proposal offers a broader lesson for reformers in Switzerland and worldwide. For all the talk of taxing billionaires, you can’t assume you have public buy-in. Step one isn’t setting the ideal tax rate, it’s creating a precedent. Get something on the books that can be worked with, even at a modest rate. Normalize the policy, earmark the revenue for something tangible and popular, and increase the rate later.
Switzerland may have said no to this tax, but it likely hasn’t seen the last wealth tax proposal. Proponents of similar measures should treat this as a strategic misstep that can be used to recalibrate and try again.
—Andrew Leahey
Welcome to the Week in Insights for Bloomberg Tax’s latest analysis and news commentary. This week, experts analyzed KPMG AI usage in performance reviews, Netflix’s transfer pricing court victory in India, and more.
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Insights
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NYC Church’s Win in Property Tax Case Shows Complexity of Use
The New York Court of Appeals’ ruling last week in a property tax charitable exemption case shows that particular facts in such cases are often so unique as to be difficult to apply confidently elsewhere.
KPMG AI Use Metric a Necessary Professional Services Wakeup Call
KPMG LLP’s decision to rate staff on their use of artificial intelligence tools in annual performance reviews is more than symbolic; it marks a structural shift in how professional services firms define performance and value. And this change is long overdue.
EU Takes First Step Toward New Era in E-Commerce Compliance
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Supreme Court Gets Another Chance to End Government Home Theft
The high court once again can strike a blow against local bureaucrats who subject homes to fire-sale auctions over tiny debts or taxes that were never due.
How Parents Can Use Trusts to Protect Wealth for Kids in Divorce
Americans increasingly have turned to trusts to protect family assets left to their children who may become wrapped up in a divorce. But properly structuring these trusts can be complex, so it’s important to use trusts correctly.
Netflix India Transfer Pricing Ruling Boosts Investor Confidence
The recent ruling from the Income Tax Appellate Tribunal is expected to boost investor confidence in the Indian market and will play a critical role in shaping transfer pricing litigation.
Here’s How Accountants Can Evolve as AI Redefines the Profession
As accounting firms face talent shortages and clients demand faster, more strategic guidance, accountants must evolve their skills and systems to stay competitive.
Effective Sustainability Reporting Means Adopting Digital Tools
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Columnist Corner
The penny’s demise creates a rounding problem for retailers but gives states an impetus to modernize sales tax policy through mandatory e-invoicing and real-time enforcement, Andrew Leahey says in his latest Technically Speaking column.
“A system where every invoice is digitally transmitted to the tax authority at the time of sale isn’t just auditable—it’s self-auditing,” Andrew writes, adding that pairing this with receipt-based lotteries for customers would benefit businesses, governments, and taxpayers. Read More
News Roundup
IRS Issues Guidance on ‘Trump Accounts’ from GOP Tax Law
The Treasury Department and IRS Tuesday released guidance on the tax-advantaged “Trump accounts” for children created by Republicans’ 2025 tax law.
Ways & Means Chief Warns ‘Time is Now’ for OECD Minimum Tax Deal
House Ways and Means Committee Chair Jason Smith (R-Mo.) fired a warning shot Wednesday to countries negotiating a revised global minimum tax deal at the OECD, vowing to take action if there’s no agreement to exempt US companies from the tax.
Law Professor Asks NY Appeals Court to Rethink Telework Taxation
New York’s taxation of interstate remote workers is due for a reassessment as teleworking becomes a “central reality of American life,” a Cardozo Law School professor told a state appeals court Monday.
Treasury Plans Regs on Transition Rule for Foreign Dividends
The Treasury Department and the IRS intend to issue proposed regulations regarding the transition rule for treatment of certain dividends received by taxpayers from their foreign subsidiaries.
Tax Management International Journal
Transfer Pricing Landscape Shifts Amid IRS Changes and Tariffs
The US transfer pricing landscape has been volatile in 2025 and promises to remain at the forefront of multinationals’ tax strategies heading into 2026.
China Manufacturing Involution Is Redefining Transfer Pricing
China’s domestic market involution is forcing multinational corporations to fundamentally rethink their transfer pricing strategies, as intense local competition erodes traditional benchmarks for profitability and value.
How Countries Stack Up in OECD’s 2024 APA Statistics Report
The OECD’s recently released 2024 Advance Pricing Agreement and Mutual Agreement Procedure statistics shine a light on the effectiveness of countries APA and MAP programs.
OECD Clarifies Home Office Permanent Establishment Rules: Part 2
The OECD introduces new metrics for assessing permanent establishment risk in cross-border remote work.
Tax Management Memorandum
California Supreme Court Clarifies Trust Amendment Standards
A California litigator’s framework for navigating exclusivity, delivery, and intent after Haggerty is presented.
Career Moves
EisnerAmper Taps Jeremy Sikkema as Partner and M&A Tax Leader
Jeremy Sikkema joined EisnerAmper as a tax partner and leader of the M&A tax due diligence practice, the firm announced Tuesday.
EisnerAmper Promotes Two Tax Partners in Minneapolis, San Diego
Matthew Brown and Michelle Myhra were named partners-in-charge at EisnerAmper’s Minneapolis and San Diego offices, respectively, the firm announced Thursday.
Ashfords Adds Middlehurst to Trusts and Estates Team in London
Thomas Middlehurst joined Ashfords as a partner in its trusts and estates team in London, the firm announced Thursday.
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