French insult the Swiss over taxation: the Swiss dish it back harder

Yahoo! News: Swiss on the defensive as tax breaks for foreigners under fire

GENEVA (AFP) - Switzerland's tax breaks for wealthy foreigners and multinational corporations are coming under growing scrutiny, forcing the country's financial establishment onto the defensive against charges they are "looting" their neighbours.
The Alpine state is regarded as a fiscal paradise for those wishing to avoid their own national exchequer, although competition within Europe is growing as countries seek to attract revenue from wealthy foreigners or companies.
Politicians in neighbouring France this month attacked the Swiss system, saying it was drawing away French citizens subject to a wealth tax at home, while the European Union also signalled its disquiet about Swiss corporate taxation.

Of course, instead of fixing what's broken in your own nation's system, it's so much easier to criticize another nation for being more attractive, and demand that they be as unattractive as you are. That's what Egalité is all about, non?

The Swiss, being pragmatic and enterprising see no reason why they should sink to the lowest common denominator in Europe:

Swiss Finance Minister Hans-Rudolf Merz sought to rebuff the charges on Friday. He justified the country's tax system as "federalism in action", saying it reflected the country's cultural identity.
The Alpine country is heavily decentralised and the 26 cantons (regions) have sovereignty over taxation. They effectively compete against each other by offering different personal or corporate tax rates.
"When people and companies are free to choose their place of residence or domicile, this forces the politicians and governments of competing locations to raise their game," he added in a statement.
Those locations, whether they are countries or regions, "offer an attractive combination of efficient public services and a fiscal burden that is as low as possible," he argued.

Best of all was this response from a Swiss banker:

Private banker Jacques Rossier, of LODH, said that French politicians who have proposed a "blockade" of Switzerland in protest at its tax regime would do better to turn their attention across the Channel to their old foes in England.
"As for the suggestion of a blockade, France should deploy its navy somewhere near Britain, because there are not only 3,600 fee payers around London, but 70,000," Rossier said.
"But the last time France did that, under Napoleon, it ended up badly," he added.

Ouch!

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