Bern, Switzerland (GenevaLunch) - The Swiss federal government says it will provide tax deductions for children but that its review of the tax system in order to find a more equitable way to tax couples has not resulted in clear answers, and a basic change to the system will not be made, as expected.
The review of how couples are taxed resulted from the current situation, where married couple pays more in taxes than unmarried couples who are taxed as two individuals. Bern says that the goal of deciding to tax two people living together no matter their marital status, either as individuals or as a couple cannot be achieved because neither solution has strong clear arguments in its favour. Rather than embark on a long and costly public debate over the two solutions, the government has decided to rapidly put in place deductions for children, who represent the largest expense for families.
News story, GenevaLunch, 13 November 2008.
Filed under: Politics
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