Individual taxation

I saw in the news today, that the federal government wants to introduce individual taxation for married couples.

Fine for income. I am just wondering how this will work for wealth. We have shared savings accounts and a shared property/mortgage :woman_shrugging:t3: (as I’m sure do many couples).

I read an article on 20 Minutes and was also surprised. Whilst I do think there needs to be an elimination of the “married tax” I do not think going to separate taxation is very practical because of what you mention but also the part about deductions for children etc.

I was hoping they could just apply a mechanism that avoids this married tax Vs going to individual taxation that will take years to implement due to new tax rates needing to be introduced etc.

It has more or less been said by Kri but surely it will never happen. Look how long the talk about eliminating the tax for living in your own home has gone on for. It’ll be the same for this initiative. I can well imagine some tinkering to minimise the “Heiratsstrafe” but generally attempting to apply separate individual taxation in a family situation will be a huge administrative exercise. For a start potentially many more tax forms to process with the same objects appearing in pairs of tax forms: house or flat, joint accounts, children etc.

This will take time. And before details become clear, difficult to judge. There will be winners and losers. The winners will be couples with two high incomes. Losers might be “traditional” families where one works part time.

From Swissinfo:

Switzerland has moved a step closer to a tax reform that would ensure people are taxed the same regardless of their marital status.

The Swiss Federal Council sent its tax proposal to Parliament on Wednesday. The transition from joint taxation of spouses to individual taxation has two main goals: to abolish the “penalisation of marriage” at the fiscal level and to encourage more people to work, above all women.

The reform should lead to a drop in tax revenue of CHF1 billion for the year 2024.

The Federal Council’s proposal is an indirect counter-proposal to the popular initiative ” for an individual taxation independent of civil status”. The government recommends the rejection of the initiative on the grounds that its counter-proposal will achieve the same objective more quickly.

According to estimates, direct federal tax revenues, calculated for fiscal year 2024, would fall by a billion. The Confederation will compensate up to CHF800 million, the cantons CHF200 million.

It sounds like it is a fait accompli for 2024 taxes.

It will complicate tax filings at least for 2024, but will be welcomed as a long time coming.

It also will remove one disincentive to marriage

So I guess then that, if the Federal initiative is accepted, the situation will be the same as now (one tax form per married couple). All that will change, as far as the tax payers are concerned, is how the Tax authorities process the earnings data on the forms in order to smooth out the “tax marriage penalty”

I bet that if you were to do a poll, the vast majority of married people would say that the “Heiratsstrafe” should be abolished while not being able to say whether individually they would even benefit.

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Didn’t you claim just yesterday that taxes were a cantonal matter? :joy:

That is probably true and also OK. People would want the system to be fair generally even if they don’t benefit personally from any correction. The “Heiratsstrafe” is clearly real if CHF 1 billion has to be found to compensate for correcting it.

Cantonal taxes are a Cantonal Matter.
Federal taxes are a Federal Matter,
and guess what! Communal taxes are a Communal Matter.

I am impressed. Did your computer tell you that?

Agreed, it will be higher than the two individuals taxations of today and everyone will have to pay a bit more to compensate. I don’t think it’s happening anytime soon unfortunately.

The “worst” part is that more people will supposedly have to be hired by the tax-offices because it will complicate their end of the the tax-calculation.