Centro Initiative: vote 29 November for tax fairness (cross-border guide)

Context

In brief

• The vote on the initiative is scheduled for November 29
• The text only concerns direct federal tax
• The income of the spouses remains cumulative
• Parliament would have three years to implement the text

Key Facts

• Object → eliminate tax disadvantages due to marriage
• Supporters → Centre, People's Party, UDF and other partners
• Scope → direct federal tax
• Declaration → accumulation of income of spouses
• Vote → 29 November
• Implementation → Parliament, three years
• Alternative model → individual taxation from 2032

The cross-party committee in favour of the Centre's popular initiative has launched the campaign in Bern ahead of the vote on 29 November. The proposal aims to eliminate the tax disadvantages of marriage and is presented by the initiators as a fair and simple solution.

The text is also supported by the People's Party, the People's Party (SVP), the Swiss Farmers' Union and the Famille 3plus association. If the initiative is accepted, parliament would have three years to define its implementation.

What the initiative envisages

The constitutional amendment only concerns direct federal taxation. It provides for the accumulation of the spouses' income in the tax return and, for this reason, excludes the transition to individual taxation. If approved, married couples would continue to fill out a joint return.

However, the text overlaps with a decision already taken by the people last March: the transition to individual taxation at all three state levels, federal, cantonal and municipal. In August, the Federal Council announced that this model will be in force from 2032.

If the Centre's initiative were to pass, the federal law related to individual taxation would probably become unconstitutional, but it would remain in force. Switzerland does not have a Constitutional Court that can correct it; it would be up to Parliament to adapt the legislation. Until then, all authorities would continue to apply it, despite the incompatibility with the new constitutional provision.

The source therefore points to a possible conflict between the levels: joint taxation for federal and individual taxes for cantonal and municipal taxes. It is not clear how the demands of the text would be translated concretely.

For the promoters, weddings should not increase the tax burden. The initiative should correct discrimination without upsetting the entire system and without favoring a particular division between paid work and family responsibilities.

"A life path is not simply a question of income distribution in a single year," National Councillor Isabelle Chappuis (Centre/VD) stressed to the media.

The committee also considers short-time work to care for children or family members to be significant and refers to the situation of retired couples, who cannot change their past organisation after the event. In the opinion of those in favour, maintaining the joint declaration would avoid the additional administrative burden that individual taxation would create for cantons and municipalities. To learn more about how the dichiarazione delle imposte works, you can start with the joint declaration model described by the initiators.

Operational details

The practical knot for couples

For those who look at the vote from the point of view of the family budget, the decisive difference is between two tax architectures. One retains the joint declaration and concerns direct federal taxation; the other aims at individual taxation at all three state levels. The comparison must be made without transforming the initiative into a promise of savings that is the same for all.

Two models compared

The first element to be checked is therefore the level of taxation. A possible yes to the Centre's text would not on its own erase the distinction between the federation, the cantons and the municipalities. The same couple could be faced with a joint declaration for federal tax and individual taxation for cantonal and municipal taxes. This is the scenario indicated by the source, not a pre-defined rule.

The second concerns the choice between paid work and family responsibilities. The initiators are calling for a reduction in the hours to take care of children or family members not to become a tax disadvantage. The argument also applies to retired couples, because their past organisation cannot be changed retrospectively. The proposal, therefore, also measures tax fairness on the course of life and not only on the distribution of income in a single year.

The institutional transition

The most delicate step concerns the authorities. In the absence of a Constitutional Court, any incompatibility between the new constitutional provision and federal law would have to be resolved by parliament. Until the amendment is made, the authorities would continue to apply the existing law. For the cantons and municipalities, those in favour see the joint declaration as a way to avoid the additional administrative burden of individual taxation.

To link the tax discussion to costo della vita in Svizzera, it is worth keeping two levels separate: the stated objective is to prevent marriage from increasing the tax burden; the possible concrete effect would depend on the implementation and coordination between the levels, yet to be defined.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

How to follow the decision

In order to follow the dossier without confusing the two models, the practical path can remain anchored in four checks. The source does not yet describe a detailed application form: if the initiative is accepted, the concrete implementation will be up to Parliament.

Four operational steps

1. Separate the deadlines. The first reference is the vote on 29 November. The second is 2032 announced by the Federal Council for the entry into force of individual taxation. These are two separate passages and should not be read as if they were the same decision.

2. Check the scope. The text of the Centre concerns direct federal tax and the accumulation of income in the joint declaration. When assessing the overall effect, the federal, cantonal and municipal levels must be kept separate, because the other reform is presented as applicable to all three.

3. Compare the family situation with the criterion declared by the promoters. The question is not only how to divide income in a single year, but whether the tax authorities favor or penalize the choice to distribute paid work and family responsibilities differently. The reasoning also includes those who reduce the hours for care and retired couples.

4. Follow up on the implementation after the vote. If yes, parliament would have three years. Until the legislation is amended, the incompatible federal law would remain in force and continue to be applied by the authorities. The point to be observed would therefore be the coordination between joint federal taxation and individual cantonal and municipal taxation.

What to keep steady

For married couples, the outcome to be monitored is not only the political principle of tax equality, but also the form of the declaration. If the text is accepted, those in favour expect it to remain joint; at the same time, the comparison with the individual model already voted makes the parliamentary phase decisive. The source does not allow a single rule to be established in advance for all cantons and municipalities.

For an income-related estimate, use the calcolatore stipendio

Source: swissinfo.ch