Obwalden
TL;DR
Founding half-canton with 1.8% flat income tax, tourism quarter of economy
Obwalden applies Switzerland's only flat income tax at 1.8% cantonal rate—a structural simplicity that attracts SMEs and high-net-worth individuals avoiding progressive taxation. Tourism accounts for a quarter of jobs, anchored by Mount Pilatus and Mount Titlis as experiential landmarks. Like its twin Nidwalden, Obwalden is a founding half-canton from 1291 with no inheritance tax. The plastic industries and tourism dual economy shows adaptive diversification from pastoral origins. The canton demonstrates how constitutional legacy (founding member status) combines with regulatory innovation (flat tax) to maintain competitive relevance.