Marriage Taxation Reform: Individual vs. Joint Tariffs and the Impact on Couples’ Finances

2024-02-21 12:55:00

Anyone who gets married is taxed differently than before, namely at the rate for married couples. The idea behind it used to be that usually only one spouse worked, the other took care of the household and children. In the married couple’s tariff, such couples fared better than those who were unmarried.

But society has changed. More and more often, both spouses work and then the married couple’s tariff becomes a boomerang. Because of their higher joint income, they pay more than if they were not married: This is the marriage penalty.

Individual taxation is an idea to remedy this injustice. Both spouses should now fill out a tax return and pay an individual tariff. To ensure that couples and families with only one earner do not suffer under the new regime, there should be relief for them. For example, the child tax deduction is to be increased from the current 6,700 to 12,000 francs.

Furthermore, the direct federal tax rate should be adjusted. The tax rates for low and middle incomes will be reduced, the basic tax allowance will be increased and the amount at which the maximum rate of 11.5 percent is reached will be reduced. “These tariff adjustments enable the reform to be relieved more evenly across income classes,” says Finance Minister Karin Keller-Sutter.

The federal government expects one billion francs less revenue as a result of the change.

1708529173
#federal #government #implement #individual #taxation

Share:

Facebook
Twitter
Pinterest
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.