The Board of the Conference of Cantonal Finance Directors (FDK) has noted with incomprehension and astonishment the Federal Council's decision to increase the cantonal share of direct federal tax only to 20.5% instead of 21.2% in the context of tax proposal 17.
At its meeting on 9 June 2017, the Federal Council approved the key points of tax proposal 17 (SV17). In setting the parameters for SV17, the Federal Council essentially followed the recommendations of the steering body, but decided that the cantonal share of direct federal tax should only be increased to 20.5% instead of 21.2% as recommended by the steering body (see our contribution of 9 June 2017).
In a press release dated 12 June 2017, the FDK board of directors welcomed the Federal Council's decision to implement SV17 in principle, but was surprised by the reduction in the canton's share of direct federal tax from 21.2% to 20.5%. The increase in the cantonal share of the direct federal tax to 21.2% was part of a compromise reached by the steering committee in the course of the preparation of the key figures for the SV17. In addition, the increase in the cantonal share was undisputed in the voting campaign and was also supported by the Federal Council.
In the opinion of the FDK, the Federal Council's decision endangers the balance of the bill and no longer respects fiscal federalism. The cantons would thus have less room for manoeuvre to secure the tax revenues of mobile status companies and to take appropriate account of the impact on their communities. The FDK will work in the consultation process, if necessary also in the parliamentary phase, to ensure that the cantons' share of direct federal tax is set at 21.2% again.
The press release of the FDK is available here
