Each year more than one billion Swiss francs flow from the national financial equation to the Canton of Bern. In concrete terms, it will be around 1.2 million francs in 2019, which will be transferred to Bern by the donor cantons, led by Zurich, Zug and Geneva. Given this financial dependence of other corners, it seems curious that the Canton of Bern wants to lower taxes for profitable companies.
The political field on the left has absolutely no understanding of the tax reduction. This took the referendum against the modification of the tax code. Few companies would benefit from the measure, while the canton would save educational, health and social problems, argue the opponents. Lack of sufficient funding.
What is it? In the cantonal tributary competition, the Canton of Bern has steadily declined based on the high tax burden on corporate income in recent years. From post 9 to rank 23 (out of 26) since 2001. And not because Bern would increase taxes. No, better said, the cantons lowered corporate income tax.
The tax burden is not the only factor of location of the companies, but an important one. For high-profit companies, it may be attractive to transfer their businesses or parts of them to other corners to benefit from lower tax rates. With the reduction of taxes it is possible to be that the companies settle in the corner of Bern. That they stay long-term, offer jobs and invest in the situation. Thanks to the expected reduction of the maximum tax burden of revenue to 18.71 percent, the Canton of Bern is approaching the Swiss average of 17.74 percent. This is far from dumping: the tax-favored corner today is 12.32 percent. In the canton of Bern, about 6,300 companies would benefit from lower taxes – 5,200 of them are small and medium-sized businesses.
Of course: there is no free tax reduction. If the law is adopted, the Canton of Bern will lose about 45 million francs in the treasury next year and, starting in 2020, about 100 million francs per year. Communities are also affected by tax losses. In 2019 total less than 23 million francs, from 2020 to a good 50 million francs per year.
However, the reduction of the tax on benefits in the canton and municipalities does not provide red numbers. The municipalities are receiving more of the general revaluation of the properties, which can greatly offset the tax losses. Among other things, the balanced austerity measures of the corner of the EP 2018 aid package ensure that the cantonal finances continue in balance.
The reduction of corporate taxes makes sense, so it is mandatory that the tax law be modified. But it's just a first step. Above all, it would be important that the tax burden recorded for individuals in the Bern corner could finally be reduced. (Berner Newspaper)
Created: 10.11.2018, 10:19 clock