65 : 35 in Switzerland

65.3% of the voters in yesterdays Swiss plebiscite rejected the proposition to limit top salaries to 12 times that of the lowest paid employee. This means that an astonishing 34.7% would have liked to see such a limit.

This proposition, tabled by the "Young Socialists" would likely have had the following result:

As posed earlier in this Blog, top salaries would have been capped somewhere around 180,000.
(Assuming an income of the lowest paid worker of, say,  15,000.)
So, please follow me on this scenario:
Company "XYZ Enterprises" employed an "Executive Vice President, in Charge of Everything" and for this highly responsible position, the company paid him  300,000 per annum.
In a tax bracket of say 50%, the state would have syphoned off  150,000.
Now with a top earning limit of 180,000, again assuming a 50% tax, the state would have to be satisfied with  90,000, loosing  60,000 in tax money.
XYZ Enterprises would have an increased bottom line by 120,000, (having to pay in wages only 180,000 instead of 300,000) which, most likely, it would have paid out in increased Dividends to its shareholders, thereby making investors, who are most likely already richer than the above mentioned "Executive Vice President In Charge Of Everything" even richer.
This highly competent EVPiCoE would probably not be all too happy about his loss of well deserved income and would  look for employment somewhere else. Neighbouring Lichtenstein, Austria Germany and Italy come to mind. It is also not far fetched to consider that "XYZ Enterprises" might seriously have considered re-locating its base of operation to one of these countries, since, to stay competitive, it would have to attract the best in their field, and, if the Market says 300,000 is the rate, then you cannot attract "the best" with 180,000.
The re-location of the entire company (and XYZ Enterprises would surely not be the only one) would have a devastating effect on the country.

"Not a problem", would the "Young Socialists" say, "we will simply pass laws that these increases in the bottom line may not be paid out to share holders as dividends, but must be distributed among the rest of the staff, and furthermore we would pass another law, prohibiting the EVPiCoE from leaving XYZ Enterprises and then we would pass a further law, making it illegal for XYZ Enterprises to re-locate their company in another country and additionally we would pass another law and then another one and then one more.
Finally "We, the Young Socialists" would control everything...
...and then we would re-name the country: "The Democratic Socialist Republic of the Alps." 

I am exaggerating, you say? Maybe!...

Consider this, however: Where controlling countries, like Russia, China, Cuba give more Economic Freedom to ABC Company Ltd., the Young Socialists of Switzerland would opt for more strangling controls.
Thank the Good Swiss Franc, over 65% of the Swiss were smart enough to see through this grab for political and economic power.

That's  the way

Bertstravels sees it, anyway.
.