The Conference of Cantonal Finance Directors (FDK) welcomes the Federal Council's rapid adoption of the consultation draft on tax proposal 17 (SV17) and supports the thrust of the proposal in principle. However, she is surprised that the Federal Council is sticking to a cantonal share of direct federal tax of only 20.5% instead of 21.2%.
At its meeting on 6 September 2017, the Federal Council opened the consultation process on the SV17 which provides, among other things, that the cantonal share of direct federal tax should only be increased to 20.5% instead of 21.2% as originally recommended by the steering body (see our contribution of 6 September 2017).
In its press release of 6 September 2017, the FDK initially welcomes the Federal Council's swift action. In the opinion of the FDK, the thrust of the bill is fundamentally correct and represents a balanced basis for further work for the attention of parliament that is worthy of examination.
What is incomprehensible to the FDK, however, is that the Federal Council is sticking to its proposal to increase the canton's share of direct federal tax to 20.5% instead of 21.2%. The 21.2% is part of a compromise, 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 fails to recognise the financial burden that cantons and municipalities have to bear in order to maintain tax competitiveness: "The Confederation does not take into account the fact that tax cuts by the cantons will bring it additional revenue. The cantons have less room for manoeuvre to secure the tax revenues of mobile status companies and take appropriate account of the impact on their communities".
In a press release dated June 12, 2017, the FDK Board had already expressed criticism of the Federal Council's decision (in connection with the publication of the key data on SV17) (see our article of June 25, 2017)
The press release of the FDK is available here
