Switzerland faces a potential exodus of multimillionaires due to a proposed inheritance tax initiative.

Authorities in Nidwalden warn of severe economic consequences, including a 60% drop in wealth taxes and a possible doubling of local taxes in areas like Hergiswil.

Experts report that wealthy foreigners are increasingly avoiding Switzerland, with many opting for countries like Italy, which offers a flat tax rate for affluent expatriates.

Critics, including Juso President Mirjam Hostetmann, dismiss these concerns as fearmongering by the wealthy elite.

However, economic analysts acknowledge the plausibility of the tax's deterrent effect.

The debate highlights tensions between economic policy and social equity in Switzerland.