To reduce debt: People in debt must be able to pay taxes in the future

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Taxes, health insurance, rent: anyone in debt is faced with a vicious circle from which it is virtually impossible to escape. Anyone who cannot pay their bills will have their wages garnished. Many debtors therefore live at subsistence level in the longer term.

The problem is that taxes are not included in the subsistence minimum under corporate law.

So it is virtually impossible to set aside part of your salary for taxes. But completing the collection procedure is also difficult. On the contrary: new debts are constantly being created.

Provide financial relief

That should now change: the Commission for Legal Affairs of the Council of States has submitted a corresponding proposal to the Federal Council.

The aim is to take into account current taxes in the subsistence minimum under operational legislation in the future, in order to provide financial assistance to those affected as quickly as possible. Special rules should be introduced for those who have to pay maintenance to their wives and children, so that maintenance recipients are not disadvantaged.

Back taxes are the most common form of debt

A look at the statistics shows how big the problem is: according to the Federal Statistical Office (BFS), unpaid taxes are the most common form of debt, ahead of outstanding health insurance premiums.

And the Federal Council also sees the problem: in its response to the proposal on Wednesday, it asked for the motion to be adopted without comment. The vicious circle may soon be broken. (oco)

Source:Blick