Married tax penalty set to end

Federal Palace, Bern

Voters will head to the polls on March 9th to decide on a major overhaul of the tax system.

The proposal would introduce individual taxation, ending the so-called marriage penalty, under which married couples with two incomes often pay more federal tax than unmarried couples earning the same amount.

The Federal Council and a narrow parliamentary majority back the reform, arguing it would encourage secondary earners – often mothers – to work more. 

Opponents, including the Swiss People’s Party and Centre Party, warn it would penalise traditional single-earner families and cost the federal budget around CHF 600m a year.

But backers say revenues will start to increase as, mainly mothers, will find it more attractive to go back to work. 

Ten cantons also say they plan to hold their own referendums on the issue as the move would impact cantonal and communal taxation. 

It will also create a lot of new paperwork. If everyone has to fill in their own tax return – that’s nearly 2 million new files. 

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