Despite not being a member of the European Union, Switzerland is under intense pressure from Brussels to raise taxes as companies flee high-tax EU welfare states in favor of more business-friendly Swiss cantons. And if the nation refuses to bow down soon, so-called “eurocrats” are threatening retaliation.

The Swiss government has been in discussions with EU bosses for over a year regarding Switzerland’s non-compliance with the “EU Code of Conduct for Business Taxation.” The EU’s goal, according to the Swiss Broadcasting Corporation, is to eliminate what the supranational regime in Brussels calls “harmful  tax practices” — low taxes which attract capital, businesses, jobs, and workers away from the crumbling European super-state.

But the EU tax regime does not apply to Switzerland, Swiss authorities insist. The nation has a long history of avoiding foreign entanglements, and despite immense pressure, it has steadily resisted calls to submit to regional authorities and continental "integration" schemes. 

In Switzerland, cantonal governments close to voters set their own tax policies. The resulting competition between the more than two dozen cantons fosters a business-friendly environment of low taxes, minimal government interference, and widespread prosperity. That is one important reason why international businesses flock to Switzerland in droves.

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Photo: Swiss flag