Categories: Politics

Cold progression: the canton of Bern adjusts taxes to inflation

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The canton of Bern can adjust taxes to inflation. (symbol image)

When wages rise due to inflation, progressive tax rates result in a higher percentage of income taxes. To prevent this, the Berne tax law provides for an adjustment of rates, deductions and tax exemptions as a result of inflation.

Income tax rates for cantonal and municipal taxes must be adjusted by the government council every time there is an increase in inflation; the other rates, deductions and tax exemptions must only be adjusted by the Grand Council if the inflation rate has increased by 3 percent. The last such settlement took place in 2011.

In 2022, the inflation communicated by the federal government was 2.8 percent. Added to the price increase since the last adjustment, inflation amounts to 3 percent. The Grand Council approved the bill in one reading. (SDA)

Source:Blick

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