The case

The aim of the abolition of the marriage penalty is to relieve 53 % of all taxpayers, which in turn means that the federal government will either have to save or raise other taxes.

Source: www.admin.ch (German, French and Italian) and Neue Zürcher Zeitung

The commentary

The Federal Council’s proposal for the introduction of individual taxation should ease the tax burden for more than half of the taxpayers and increase the burden for a minority.

The government aims at distributing the net tax reduction of around CHF 1 bn per year across the income groups as evenly as possible. Family taxation in Switzerland has been in the making for decades and the current state has often been criticised. Yet a reform that might win over a majority still seems distant, not least because every reform entails new disadvantages.

What is good about the latest attempt at introducing individual taxation is that it has the support of a majority in parliament. Yesterday, the Federal Council presented the definitive proposal on individual taxation to the attention of the parliament and as an indirect counter-proposal in answer to the popular initiative in favour of individual taxation.

The parliament has until 8 March 2025 to come up with a recommendation on whether to accept or reject the popular initiative. The deadline can be extended by one year if a council has previously passed a resolution on the indirect counter-proposal. 

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