Karin Keller-Sutter should take a trip to Delaware

by Toni Brunner*

(18 June 2021) It was during the last financial crisis in 2008/2009. The USA was looking for money and new sources of income and so the then US President Barack Obama attacked banking secrecy and with it Switzerland.

Our Federal Councillor for Eastern Switzerland, Hans-Rudolf Merz, said at the time: “You will have a tough time on our banking secrecy but you will not succeed!" In the summer of 2009, the big bank UBS delivered thousands of client data to the USA, and banking secrecy was eliminated.

Obama forced the Fatca agreement on Switzerland. Since then, Swiss banks have had to report all accounts of Americans and levy high taxes. And that's not all: every time a property is transferred – for example here in Toggenburg [valley in eastern Switzerland] – the parties involved have to sign various “American” documents with their local bank. The Americans want to be sure that no deal is missed out. As if it's any of the Americans' business if an old farmhouse is sold among Swiss compatriots here in eastern Switzerland.

The financial crisis is over, now we have a new crisis. The Corona crisis. And once more the Americans are looking for new tax money worldwide. After Barack Obama, the next Democratic president Joe Biden is in charge. After all, 1900 billion have to be financed for an aid package and another 2000 billion are needed for an “American Job Plan”. Further billion dollar plans have been announced. The US administration of President Biden also wants to impose a global minimum tax on corporations.

Donald Trump left Switzerland alone, but the wind is changing. The enforcement of American tax laws and international agreements has always been booming under Democratic presidents. Now it's up to our Federal Councillor from eastern Switzerland, Justice Minister Karin Keller-Sutter. When the Americans are looking for new money again, they like to talk about draining so-called tax havens. And the target is Switzerland. Not because we are a tax haven, quite simply because we have remained an important financial centre.

I recommend that Karin Keller-Sutter go on a business trip to Delaware. There she can see how the Americans “enforce” the tax laws they have imposed on foreign countries and especially on Switzerland.

Delaware, the home state of Joe Biden

The state of Delaware is the home state of Joe Biden. The American president served as a US senator for Delaware from 1973 to 2009, winning re-election six times! Today, Delaware has a population of just over 976,000 and is the preferred headquarter’s state of numerous US corporations such as the Bank of America, JPMorgan Chase, Amazon, Alphabet (Google), Facebook. In total, over one million companies are registered in Delaware. There are more companies in the state of Delaware than residents. In one building alone (Corporation Trust Center), more than 300,000 companies are said to be registered. The government itself distributes brochures advertising all the tax advantages of the state. Of the $4525 billion in tax revenue, about $1.5 billion comes from corporations. Special rules apply to companies setting up in Delaware. The tax climate is mild, and companies enjoy special privileges.

Let us remember. The Americans will soon be at our doorstep and will make further demands on Switzerland. New tax treaties, harmonisation or stricter international standards will be on the agenda. Switzerland should show more composure at the next available opportunity and not comply with all demands and pressure attempts in anticipatory obedience.

In the face of the American demands, our Minister of Justice from Wil SG has to show straightforwardness and stubbornness – typical character traits of the people in eastern Switzerland. “Look Americans, if you don’t put your own house in order, you don’t even need to knock on our door.”

Joe Biden is a very bad example for more far-reaching demands that ultimately only serve to weaken the Swiss financial centre; and to strengthen Delaware unilaterally. One can only say: return to sender.

Source: Thurgauer Zeitung from 25 May 2021

(Translation “Swiss Standpoint”)

* Toni Brunner is a Swiss politician and farmer from Toggenburg, Eastern Switzerland. He was elected to the National Council in the 1995 Swiss parliamentary elections at the age of 21. In 2008, Brunner was elected party president of the Swiss People's Party (SVP), which he led until 2016. After 23 years, at the end of 2018, Brunner stepped down from his National Council mandate.