Last February, Zurich became the first Swiss canton to rescind the special tax treatment of wealthy individuals who live in Switzerland but carry on no business and earn no income in the country. In similar fashion, the socialist party in Geneva has announced that they will seek to have a similar vote before the end of 2009. Whether this move will lead to any changes in the rules is open to question, however.

Geneva has 650 individuals who pay a flat tax based on their outgoings rather than their income, out of some 3,772 people nationally. In nearby Vaud, which has the lion’s share of these individuals (nearly 1,200), the cantonal parliament is set to refuse a vote on the issue.

The Geneva socialists think that these individuals will remain in the canton if the vote is carried despite an immense increase in their tax bill - on account of the quality of life and health care.

David Hiller, the Cantonal Finance Minister does not share their expectations. “One should not be under any illusion. The example of Zurich shows that people will leave. One must expect a reduction in tax receipts,” he said recently on local radio.

Other politicians suggest that any action should be co-ordinated at a federal level to avoid the situation where individuals simply move to a neighbouring canton which will simply reduce Geneva’s tax revenue for no benefit.

The socialists say that they are under no illusions - the Geneva parliament is unlikely to agree to a vote on the issue – but they hope to gain some allies in their quest for equal tax treatment for all and regard the issue as one on which they can campaign for the popular vote.

In the end, the project is unlikely to become law, so the ranks of Formula 1 drivers, pop and film stars and other wealthy individuals can expect to continue to benefit from the tax regime while helping the top end of the local property market maintain its level.