Switzerland Officially Rejects Request from Brussels to Negotiate Surrender of Tax Sovereignty

Politicians from high‐​tax nations in the European Union are upset that companies — and tax revenues — are escaping to Switzerland to benefit from better tax law. But rather than fix their bad policies, they want the Swiss to raise the tax burden on economic activity in Switzerland. Not Surprisingly, as the Neue Zuricher Zeitung reports, Swiss leaders have said no:

The Swiss government has rejected formal negotiations with the European Union in a bid to resolve a controversy over the country’s corporate tax system. …Finance Minister Hans:Rudolf Merz and Foreign Minister Micheline Calmy:Rey said on Wednesday that Switzerland would not surrender its sovereignty on tax matters. The statement came in the wake of a decision earlier this week by EU ministers to open official negotiations with Switzerland. …Over the past few weeks several ministers have come out against holding formal negotiations with Brussels in the tax row. Merz said the cabinet and the cantons, which have wide:ranging autonomy in fiscal matters, wanted to ensure that Switzerland remains competitive.