Tuesday, November 23, 2010

Budget Villa For Rent For A Month In Bali

Tax "fair" initiative: life is expensive!

This is a proposal submitted to it therefore be introduced for all cantons of Switzerland for a minimum tax rate for private wealth and income. Annual income that exceeds CHF 250'000 .-- to 22%, capital of CHF 2,000,000 .-- with 0.5% tax will be punished. This is quite irrespective from where the income or wealth comes from. An honest citizen who has built his wealth and risk his business and is now dependent on the revenues to be financially ruined in this way and sold literally from Switzerland.
The initiative, which is represented by some SP-affiliated politicians as fair turns out to be in Reality as total expropriation measure, which the state seeks to possess virtually the entire national wealth. Self-employed business, saving private assets, and develop economically by such a measure is virtually impossible, as almost one in four francs, which one deserves to be ceded to the State. Should we allow envy and resentment against the better-paid driving us all to financial ruin?

Switzerland is not a typical commodity country where the people sitting on oil reserves and with very little effort can reap a big profit. The economy is based on industry and trade. Technological advances and increasing globalization one is in these sectors constantly dependent on innovation and investment, while tends to decrease with increasing pressure of competition the profit margins. Building a business, it was a production company or a trading company, claims an enormous sum investment (assets), which is often only an annual net revenue in the single digit percentage range is currently facing.


As an example, consider a property administrator, in Zurich's center a residential complex with 100 apartments worth a total of 20 million. Franken has purchased half of them paid and self-interest on the other half as a mortgage with the bank. From a cheap rented apartment is a net monthly income of around 200 - to be expected. This results in this case a net annual income of 240,000 .--. In terms of the investment of 10,000,000 .--, the profit margin 2.4% of invested assets, or about as high as the rate of a youth savings account. Assuming that this tax increase would come into force, the landlord would have to invest CHF 10 million. all 2 million. exceed taxable in this case 8 million .- with 0.5%, which is CHF 40'000 .--. So that his net profit is reduced to 2% of the invested sum of money. He would have his estate for 50 years without further investment to need to make the same price, rent, so that the business is worth. Varying fees would be fully passed on to the tenant because the landlord has no financial reserves. In short, the millionaire owner is punished, the more expensive, the student flat.

This initiative aims to destroy the private sector sustainable in order to bring the economy into a Marxist form. Hypocritical politicians themselves, credit to the taxpayer financed several 100'000 .-- franc annual salary stir up a real envy of all, is anybody in the industry to greater financial success than she should not talk about justice in the first one once the fees of the politicians take a closer look? It is time that we can no longer manipulate this Heuchlerbande what we will illustrate with a no at the ballot box.

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