“Finally also fair taxes and pensions for married couples”: With this slogan the center party, with the support of the EPP, collects signatures for two referendums. The initiatives “Yes to fair taxes” and “Yes to fair AHV pensions” aim to rectify the current unfair situation.
In tax terms, married couples are often at a disadvantage compared to unmarried couples with the same income in the calculation of the direct federal tax. According to federal data from 2019, about 454,000 dual earners and 250,000 retired couples are affected by the so-called marriage penalty.
“This situation needs to be corrected”
Financial and tax calculations should never play a role in someone’s life choice, Center president Gerhard Pfister (60) told the media in Bern. Discrimination against married couples in taxes and AHV pensions leads to injustice in society. “This situation needs to be corrected,” Pfister said.
As early as 1984, the Federal Supreme Court ruled that tax discrimination against married and registered couples compared to cohabiting couples was unconstitutional. “Nevertheless, the Federal Council and Parliament have been struggling for years to find a solution,” said central councilor Pirmin Bischof (63).
Last initiative failed
In 2016, the electorate narrowly rejected the popular initiative of the then CVP “For marriage and family – against the marriage penalty”. Because the federal government presented false numbers, the federal court later ruled that the vote should be reversed.
The center is now launching two new initiatives to abolish the marriage penalty. At the end of September, the Federal Chancellery gave the committee the green light to collect signatures. The collection period runs until March 27, 2024.
Two new attempts
On the one hand, the constitution should state that married couples should not be placed at a disadvantage compared to other taxpayers. Specifically, for married couples, in addition to the joint tax, an alternate tax calculation must be made based on the unmarried rate and deductions, and the lesser of the two calculated tax amounts must be levied.
The second initiative seeks to constitutionally prohibit a reduction in the sum of the two pensions of a married couple. If two people are married or in a civil partnership, they currently receive a maximum of 150 percent of the maximum pension. This is in contrast to unmarried couples, who receive two full pensions. Removing the previously applicable limit for married couples is ‘just’ and ‘only fair’, says Central Landsraadslide Marianne Binder (64).
Individual load for the middle wrong approach
Taxation of married couples has been on the political agenda for years. Parliament included them in the 2019-2023 legislative plan two years ago. An interpretation of the Federal Council has been available for about a year.
The Federal Council has two main options for abolishing the marriage fine: a proposal with a tax credit for single-earning couples, who may face a heavier tax burden due to the reform, and a proposal without such a measure. According to the Federal Council, emergency measures are also planned for taxpayers with children. An initiative of the FDP women calls for individual taxation.
However, from the point of view of the center, this is not the right way. Individual taxation would mean a massive intervention in the existing tax system, said alderman Karin Stadelmann (37) of Lucerne. Your party proposes to maintain joint taxation. This means that there is no systemic break between the federal government and the cantons, nor is there a bureaucratic monster.
(SDA)