Tax break for families in election year.
Fonction | News |
Both chambers of the Swiss Federal Assembly approved tax cuts worth over CHF2 billion, mainly benefiting middle-class families, homeowners and stock market investors. The decision, which comes as the Swiss get ready for national elections in October, is opposed by the cantons. Under Switzerland's complex three-tier tax system, the cantons stand to lose over CHF500 million in revenue, this the main reason why they have threatened to call a nationwide vote on the issue. There were even grumblings in the Council of the States, which is made up of representatives from the cantons, with some parliamentarians denouncing what they called "election year gifts."
Families will be the biggest beneficiaries, pocketing tax breaks totalling CHF1.2 billion. These include deductions for children and childcare. A single-income family with two children and a gross income of CHF 60,000 would no longer pay federal tax, while a family earning CHF100,000 would pay just CHF371 instead of CHF901. Higher-income families will enjoy even bigger savings: those earning CHF200,000 will see their tax bill slashed by CHF3,614. The package also includes a CHF480 million break for homeowners, and a reduction in stamp duty worth CHF310 million.
Too Good a Deal
The tax breaks are CHF280 million more than the government had asked for.
Swiss...
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