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Removal of marriage tax penalty fails to win broad party support

Married couples in Switzerland are taxed together on their combined income. This does not apply to unmarried couples who are taxed separately. This often acts as a tax incentive for one member of the couple to work, disproportionately affecting women. The organization wants to get rid of this compound taxation of income that the federal council has been working on.

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But this week, RTS reported that the majority of political parties opposed the federal council’s proposal. The Swiss People’s Party (UDC/SVP), the Center Party, the Green Party and the Socialist Party all said they would oppose the Federal Council’s proposal. Only PLR (FDP) and the Liberal Greens supported that variant.

Objections to the proposal fell into two categories. The Swiss People’s Party (UDC/SVP) and the Center Party have argued that income should be taxed at a higher rate if the income is for one person instead of being split between two people. A breadwinner who does not like the negative impact that income can have on a single family member because it The Socialist Party and the Green Party, concerned that the cost of the plan is expected to be as high as CHF 1 billion, have called for alternative proposals to tax high earners more heavily.

The PLR ​​(FDP) and the Liberal Green Party continued to support the move on the grounds that it is family and gender neutral and will motivate couples to do both jobs. At the same time, the PLR ​​(FDP) rejected the Congressional plan. According to the party, this should be fixed. The Liberal Greens cited a study estimating that the change would get him to join the workforce by 60,000 people.

If the federal government’s plan fails to win a party majority, the only avenue left for those in favor of change may be to put the issue to a vote. An initiative to initiate a public vote on this subject has received enough signatures by the end of 2022.

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