Here’s what you need to know: who wins, who loses?

The principle is that married couples should be taxed separately just like unmarried couples. That is why everyone must complete a tax return. Nowadays, married and registered couples are taxed together. This sometimes has an expensive effect: because they both work, the married couple has to pay more tax due to the progression than a cohabiting couple with the same income. The change in individual taxation is intended to eliminate this “marriage penalty” and create incentives so that women in particular can increase their workload. The Federal Council proposal is also an indirect counter-proposal to the FDP initiative for women’s tax justice

According to Keller-Sutter, the tax burden will decrease for a “clear majority” of taxpayers. First of all, the proposal benefits married couples who both earn approximately the same amount. Many retired couples will also pay less taxes. However, because the Federal Council is adjusting the tax rate for direct federal taxes, unmarried people without children will also benefit. In concrete terms, tax rates for low and middle incomes must be reduced. The basic compensation will be increased from 15,000 to 20,000 francs. Very, very, very good earners, on the other hand, should pay a little more.

Couples who live according to a traditional family model would have to pay more taxes. Couples with children are particularly affected, as the Federal Council increases the child tax deduction for direct federal tax from 6,600 to 12,000 francs. Paradoxically, this can lead to a higher tax burden: the deduction is shared between both parents – and if the mother has no income, she cannot deduct anything. In this case, only the father can deduct 6,000 francs. It should be noted that 40 percent of families pay no federal taxes at all. Initially nothing changes for them.

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In the longer term, at best, because the Federal Council wants cantons and municipalities to also switch to individual taxes. But it is not yet possible to say what the effects will be there. The cantons are satisfied with the way in which they implement individual taxation. In principle, a canton could also give preference to single-income families.

Unmarried couples with children could also pay more taxes. This is especially true if they have very high incomes. However, for low and middle incomes, the additional tax burden is offset by the increased child deduction and the reduction in the tax rate. But the same applies here: this initially only affects direct federal tax.

When it comes to direct federal taxes, the federal government assumes a revenue shortfall of 1 billion francs per year. Of this, the federal government contributes 800 million francs and the cantons 200 million francs.

The Federal Council has now referred the proposals to parliament. The committees there will first review the file, followed by the National Council and the Council of States. It is completely unclear when individual taxation will come into effect; that will certainly take another two to three years. And that only applies to the federal level. The cantons will need more time.

And even in the Federal Parliament (almost) everything is possible. It is even conceivable that the template crashes. Most parties want to abolish the marriage penalty. But there is disagreement about how.