As usual, during votation period, it could be observed in many comments that rich should somehow pay more taxes. To be straight, I agree in principle that rich households would usually benefits more from common infrastructure and also social peace, so there is a reason why.

My question is the following: who are these comments targeting? What is the definition of rich when I read such comments?

In economic studies, there are two common definitions:

1. The population with the top 10% income, or top 10% wealth.
2. Population who earn more than twice the median income.

By the first definition, there is around 10% of earners who are rich. The second one somehow measure inequality or concentration around the median and probably has less than 10% of share.

The median income is around 6.67k CHF /month [gross], the top 10% quantile is 12k [12.5k Geneva, 13k Zurich canton] CHF/month.

So, my question at last, how is life for those earning those amount? Would you agree on the statistical definition? Are they too low? Too high?

To be honest, I come from a [statistically] poor family from war refugees, but I now feel rich, because I can finally spend money in a hobby (biking) 😅.

Source: https://www.bfs.admin.ch/bfs/en/home/statistics/work-income/wages-income-employment-labour-costs/earnings-structure/major-regions.assetdetail.21245698.html

by neo2551

8 comments

  1. 1 gazillion in premium bonds is quite wealthy imo

  3. I don’t know man, I think having a lot of capital can change the perception of quality of life drastically. I am around 85% and I absolutely do not consider myself wealthy.
    Also – what about your partner? If you’re at 135k and your gf aswell that is very different from having a partner with 65k

    About capital: if you already own a home or an Appartement- that can drastically change your savings rate – interest on debt is tax deductible… improving your own home? Tax deductible.

    Thats why the difference between rich and normal grows (its called the capital accumulation effect) and thats why the general hatred towards people with good income is misplaced…. Do you know how hard it is to reach 180k+ in income alone? Guess what: you still cant afford most houses, thats not enough household income.

  4. i would say ‘rich’ is someone that technically would not have to work anymore for the rest of his life and still enjoy a decent lifestyle

  5. “Rich” is a relative thing. I am in the top 10% of this chart, but drive a 15-year old car and cook at home. In any other country, I would be seriously rich. But it also costs a lot to live in Switzerland.

  6. I think it’s also unfair to treat all swiss equally. As you point out, there are vast economic differences between regions. My household’s income is way above the Swiss  median, but our appartment in Geneva was also a lot more expensive to buy that somewhere else like the Jura, our health insurance is the most expensive in the country, and federal taxes are the same for all Swiss people meaning that my marginal tax rate is high despite the fact that cost of living is also higher here compared to rural cantons. To top it up, part of my taxes are used to subsidise those cantons with the péréquation financière.

    I don’t feel rich. My family lives comfortably but we can’t afford flying first class and that type of luxury.

    I disagree that rich households benefit more from common infrastructure, you made that statement without challenging it as if it was a fact, and in any case rich households proportionally already contribute a lot more. For example wealthy households in my area may send their kids to private schools, so not only they pay for public schools but they have to top that expense with their own.

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