http://www.iht.com/articles/ap/2007/01/06/europe/EU-GEN-Switzerland-France-Tax-Spat.php
International Herald Tribune
Swiss president rejects French criticism over her country's low taxes
The Associated Press
Published: January 6, 2007

GENEVA: Switzerland's president has rejected French criticism of her country's
low taxes, demanding more "respect" from her cross-border colleagues.

Speaking in an interview on Swiss television late Friday, Micheline Calmy-Rey
responded to comments from French lawmaker Arnaud Montebourg, who said it was
time the EU did something about the tax "banditry" of some Swiss cantons
(states).

"We don't need any advice" on setting taxes, said Calmy-Rey, adding that it was
up to Swiss voters to make their own decisions and that each country had the
right to defend its economic interests.

Montebourg is an ally of French Socialist presidential candidate Segolene Royal
and the spat follows the much-publicized tax-flight of Gallic rocker Johnny
Hallyday to Switzerland amid a heated debate over taxation that has become a
central issue in the presidential election campaign in France.

Calmy-Rey, a Social-Democrat whose one-year term began on Jan. 1, noted that
more than 100,000 French citizens cross the border into Switzerland every day to
work, and that her country collected about 300 million Swiss francs (US$240
million; €185 million) in taxes last year for the European Union even though it
is not a member of the bloc.

Each Swiss canton sets its own personal and corporate tax rates, which can be as
little as half that of large EU members such as Germany, France or Britain.

On Thursday Kraft Foods Inc., the world's second-largest food and beverage
company, said it was moving its European base to Zurich, where it will benefit
from considerably lower taxes than in its previous headquarters in London and
Vienna.