Without a relief package, Keller-Sutter threatens a tax increase
Published: Saturday, Nov 2nd 2024, 07:50
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Federal Councillor Karin Keller-Sutter has defended the planned adjustment of tax benefits for capital withdrawals from pension plans. "If the tax relief package fails, taxes will have to be increased," she said in an interview.
Such an increase would primarily burden the middle classes. The discussion about tax adjustments to capital withdrawals from the second and third pillars is a proposal from the Gaillard group of experts and only a small part of the planned relief package, as the Finance Minister said in an interview published on Saturday by "Schweiz am Wochenende", "Südostschweiz" and "Le Temps". However, "it is not out of the question that the Federal Council will not include the measure on the third pillar in the consultation process, for example", Keller-Sutter continued.
In view of the unfavorable budget outlook for the coming years, the Federal Council announced in September that federal spending would be cut by CHF 3.6 billion from 2027 and by CHF 4.6 billion by 2030. The primary focus will be on expenditure. This plan is based on the report by a group of experts chaired by the former head of the Federal Finance Administration, Serge Gaillard, which was presented at the beginning of September.
Although the deficit for 2023 is lower than expected - around CHF 900 million instead of CHF 2.6 billion - the long-term financial situation remains tense, emphasized Keller-Sutter. Additional burdens, such as the introduction of the 13th AHV pension from 2026, would make budget planning even more difficult.
Brake on debt
Despite the deterioration in federal finances, the Finance Minister is not in favor of adjusting the debt brake, which limits spending to the level of structural revenue: "The debt brake is a pillar of Switzerland's success", which has enabled Switzerland to "overcome the debt period of the 1990s", she noted.
If the state wants to be social and meet its obligations, it has to be "strong", said the minister. "So you have to set priorities". However, the minister would "very much like the people to vote again" on this constitutional norm.
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