Keller-Sutter defends Switzerland: Enough redistribution already!

Keller-Sutter defends Switzerland: Enough redistribution already!

In Switzerland, the population recently rejected an inheritance tax initiative launched by the Young Socialist Party Juso. This initiative envisaged taxing estates and gifts over 50 million francs. Karin Keller-Sutter, the Federal President of Switzerland, commented on this on November 30, 2025 and interpreted the vote as a positive sign for Switzerland as a location and for the functionality of the existing tax system. Loud Council Gazette Keller-Sutter emphasized that asset owners already make a significant contribution to tax revenue and that there is “enough redistribution.”

But what exactly does redistribution mean? The term describes measures that influence the distribution of income or wealth within a society. It is important to understand that redistribution can have both positive and negative aspects. Ideally, it leads to greater fairness, for example through redistribution from the top to the bottom third of income. But in many cases the issue is also examined critically, as redistribution can lead to injustice, such as redistribution from bottom to top. These inequalities are often reinforced by a lack of support from the state, such as Wikipedia describes.

Debate about existing privileges

Critics interpret the rejection of inheritance tax as a protection of existing privileges and concentrations of wealth in society. While Keller-Sutter points to the supposed balance of the tax transfer, others argue that this view ignores existing socio-economic disparities. In reality, there is a continuous call for a more equitable redistribution of wealth and income in order to actually promote social equality.

In Switzerland, around two billion francs are invested in climate protection every year, but there are discussions about whether the financing of such social tasks could be shifted to less progressive sources. While many asset owners are proud of their contributions, from a broader perspective the question might arise: How fair is the existing tax system actually?

Basics and challenges of redistribution

Redistribution occurs not only through taxes, but also through social benefits and subsidies, which are part of a comprehensive government distribution system. However, it is important to emphasize that not all accommodation leads to redistribution in society. In many countries, such as Germany, the redistributive effects of progressive tax systems have declined, as some studies show. The Gini coefficient is often used as a measure of inequality in income distribution. Values ​​above 0.5 indicate high inequality.

Demands for fairer redistribution are increasing among the population. The trend in Germany shows that the proportion of people who support greater redistribution increased from 66% in 2007 to 77% in 2019. This speaks to the growing dissatisfaction with the current distribution of wealth and resources, which many perceive as unfair. Despite these trends, the topic of redistribution is often overshadowed in public discourse and needs more attention to point out the existing grievances. For further information on social inequalities in Switzerland, it is worth taking a look at the statistics Federal Statistical Office.