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Finance Minister Ueli Maurer hopes that the partial abolition of withholding tax will stimulate Switzerland as a business location. The contra side disagrees: the reform will primarily benefit large investors. There was a controversy about a study in the voting booklet.
According to Finance Minister Ueli Maurer, the reform of the withholding tax law is just a “little reform”. But everyone could benefit from it.
The withholding tax is to fall in part – including on new domestic bonds. This is what the Federal Council and Parliament want. The left, on the other hand, held the referendum.
“We find that the withholding tax on domestic bonds has led to business migrating abroad,” said Maurer in the “Arena” on Friday evening.
For investors abroad, it is less attractive to invest in bonds here than in countries that do not have a comparable tax, such as Luxembourg. “We want to get the money back.” This is intended to stimulate Switzerland as a business location.
With this template we create a two-class Switzerland.
“A scandalous template” was that, said Daniel Lampart, chief economist at the Swiss Confederation of Trade Unions. “With this template we create a two-class Switzerland.” Employees who have a savings book would still have to pay the withholding tax and declare everything.
On the other hand, those who could invest in bonds, wealthy and large investors, would have tax advantages and would no longer be controlled. The Federal Council has the mandate to treat everyone equally.
Federal Councilor Maurer countered that it was not worth cheating in this area of bonds, the yield was too small and the interest rates too low.
He also assumes that there is a high level of tax honesty, that he trusts the citizens and does not accuse them of any criminal activities.
Are there tax losses or additional income?
There was also controversy over whether the reform would pay off financially in the longer term. The tax authorities are assuming annual revenue shortfalls of at least CHF 215 to 275 million. However, the losses will be compensated for in three years, said Ueli Maurer. Overall, the Federal Council is assuming additional revenue.
The federal government spread “fake news”, but complained to Daniel Lampart. Some companies that are based abroad already pay no withholding tax. A study in the ballot book says, however, that the abolition of the tax would mean that around 500 million Swiss francs would flow from these foreign companies to Switzerland. These are numbers that have nothing to do with withholding tax.
Taxpayers benefit from reduced infrastructure costs.
It is hoped that the reform will result in interest rates on bonds falling, said GLP National Councilor Kathrin Bertschy. Not only corporations would benefit from this, as the opponents argued. To a large extent, this would also benefit the public sector, i.e. the federal government, cantons and municipalities, which in turn would finance infrastructure. “Taxpayers benefit twice, through additional tax revenue from the business that we’re bringing back, but also through reduced infrastructure costs.”
SP National Councilor Prisca Birrer-Heimo sees it differently: “Households today are confronted with rising costs, energy costs are increasing, purchasing power is decreasing, and the increase in health insurance premiums is pending.” Right now, when people are having to tighten their belts, it is being claimed that the lost millions can be dispensed with for a few years. Whether the promised income will come is not scientifically supported, but “wishful thinking”. “We cannot afford to abolish this tax,” said Birrer-Heimo.
The “Arena” started the new political talk season with a supposedly dry topic – but a lively debate quickly developed. It will be seen on September 25 whether voters will accept this tax bill after they voted no to the stamp duty law.