The case

24.026 BRG. ‘In favour of individual taxation regardless of marital status (tax justice initiative)’. Initiative and indirect counterproposal. – Discussion in the National Council.

Source: NR – 24.026 BRG (pp 20/32). & economiesuisse & WAK-S

The commentary

The aim of the initiative ‘In favour of individual taxation regardless of marital status (tax justice initiative)’ is to reform the current Swiss tax system. At present, married couples are taxed jointly and progressively, which leads to fewer incentives for married second earners in particular to pursue gainful employment. The proposed system change to individual taxation should largely eliminate these negative incentives to seek work. In order to distribute the costs of the reform evenly across all income brackets, the tax rate should be made more progressive.

The Swiss economy is dependent on qualified skilled labour and expects an untapped potential of second earners. Individual taxation could significantly improve the employment incentives for this group. Models such as splitting or other forms of joint taxation do not achieve this effect to the same extent. For the system change to be fully effective, it must also be implemented at all levels of government (federal and cantonal). When changing the system, the effects on other areas of law that are currently geared towards the taxation of married couples must be taken into account, such as premium reductions, daycare subsidies or inheritance law.

Yesterday, the Commission of the Council of States (WAK-S) also revised the Federal Council’s counter-proposal (24.026) by amending some provisions, e.g. taking account of the situation of married couples with unequal incomes. The Commission adopted the bill in their overall vote. As to the remaining proposals, the Commission agreed with the resolutions of the National Council. The bill is going to be submitted to the Council of States in the spring session.

This publication has been prepared solely for information purposes and is does not constitute a recommendation, a solicitation, or an offer. The information on which this publication is based has been obtained from sources that we believe to be reliable and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to its accuracy. All expressions of opinion are made as of the date of publication and may be subject to change without notice. k-flash and all related affiliates accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this publication or any part of its contents. The use of this publication should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. This publication is not directed to any person in any jurisdictions that prohibit such publication.