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Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

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The Swiss administrative canton of Geneva has imposed a new "wealth tax" on those whose personal fortune exceeds 1.5 million Swiss Francs (approximately $ 1 million). The canton's voters on a referendum voted narrowly in favor of such new tax, which was submitted by a local left-wing coalition. For the proposal voted 53,350, against - 52,620, i.e. the margin was just 730 votes (a little more than the margin that decided the presidential election in the USA in 2000).

Companies that post profits of more than 1 million Francs a year would also be subject to this new tax, which in theory would come into effect only when the unemployment rate goes above the 2% mark. In reality this tax will come into force immediately because in the recent months the level of unemployment in Geneva stood at more than 4%.

It's estimated that in the canton are living approximately 4,500 millionaires that will have to pay this new "wealth tax". It's also expected to raise an additional 250 million Francs ($ 170 million) a year.

What appears to be excellent news for the unemployed people in Geneva in fact is a very bad development for the rich businessmen who have settled in the canton exactly because the taxes there were lower than in many other places in Europe. There isn't precise statistic on how many exactly out of these 4,500 millionaires are of French origin but we shouldn't be surprised to hear that there are lots of people falling into this category.

Some months ago I was writing articles for Wallstreet Journal Europe on the Luxury Residential Real Estate on the continent and Switzerland, especially Geneva were cited as examples of both excellent living conditions and lower taxes compared to many other developed European countries such as France and Germany. So far both Geneva and the other neighboring French-speaking canton of Vaud were among the favorite places of residence for wealthy individuals seeking to avoid high taxes in their own countries. But not any more as far as Geneva is concerned.

In reality the victory for the "higher tax" partisans may turn to be their failure in a long run. Can we site just one example of a country were higher taxes have contributed to economy acceleration? These taxes can produce an image of social justice or increase the social programs but they can't create a wealth, because they only can distribute it.

What the first reaction of the Geneva millionaires should be? Of course, they will ask for information on whether they can transfer their wealth to a safer place in the country or abroad. There are so many places around the world offering excellent tax conditions, maybe not coupled with excellent living conditions like in Geneva but how cares about better schools or hospitals if the millions are put on risk?

Some millionaires will remain in Geneva, that's no question about that. Some will leave the canton, but even this won't cause the real problem. It will come from the fact that the city will lose from the newcomers who still can choose between Geneva and other places in the country, the continent and around the world. As a result, after a year or two of extra revenues, the canton will find itself cut from what used to be its main source of additional income - emigrating millionaires from the other European countries.

These millionaires will find a safe place for their money, we shouldn't doubt about that. But whether Geneva will find more golden geese like these? It's always easier to kill a golden goose instead of waiting for her to lay down its golden eggs.

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Canton - a territorial-administrative unit of Switzerland with its own legislation on some particular issues.

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