“Let the poor pay”: Readers are upset about the AHV decision

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• The 13th AHV pension is set to be paid out for the first time at the end of the year.
• To fund this, the National Council wants to raise the value-added tax by 0.4 percentage points; it narrowly rejected higher payroll deductions.
• Many readers criticize the decision as unfair, while others consider the VAT increase the fairer solution.

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The financing of the 13th AHV pension is stirring up strong emotions. On Wednesday morning, the National Council rejected higher payroll contributions of 0.2 percentage points by a vote of 98 to 96, with 4 abstentions. Instead, the value-added tax is set to rise by 0.4 percentage points.

The reduced rate for everyday necessities such as food and medicine will remain unchanged. The fact is, however, that the payroll contributions would have placed a significantly heavier burden on high earners. Although all wages would have been taxed at the same percentage rate, in Swiss francs, the payroll deduction for a monthly salary of 20,000 francs (240 francs per year) would have been significantly higher than for 4,000 francs (48 francs per year).

The proposal was part of the motion put forward by the Conciliation Conference of the National Council and the Council of States, but it was rejected by a margin of just two votes.

This decision has drawn a great deal of criticism in the comments section. One reader writes: “Now pensioners are being made to foot the bill: First we pay higher taxes, then even higher VAT on top of that!” His conclusion: “High earners pay almost nothing!” Several comments accuse the SVP and FDP of going easy on high earners and the wealthy.

One reader counters that higher earners pay more VAT because of their higher consumption. Another describes financing through VAT as “right and fairer” because “everyone, including retirees,” contributes.

Other readers suggest alternative sources of funding—such as capital gains, dividends, a luxury tax, or the subsidy fund.

Another reader appeals to pensioners ahead of the upcoming referendum on the VAT increase: “Dear pensioners, a ‘NO’ vote is a must!”

Politically, the decision was close. In the vote on the increase in payroll contributions, the SVP, FDP, and GLP prevailed. The GLP, however, voted in favor of the VAT increase.

The matter is not yet completely settled. The VAT bill still has to pass the final votes on Friday. After that, the people and the cantons must approve it, because the increase requires a constitutional amendment. The higher value-added tax could bring in an additional 1.4 to 1.6 billion francs per year for the AHV by 2030. That is nowhere near enough to finance the 13th AHV pension.

The FDP sharply criticized the decision, stating in a press release: “The center-left is making consumption more expensive.” The party boasts that it was “the only party to vote unanimously against the additional burden” and announced that it would fight the “irresponsible tax increase by any means necessary.”

Sharp criticism is also coming from the left: The SP, which had approved the higher payroll contributions, is now warning against raising the retirement age following the “no” vote. “The FDP and SVP refuse to implement and finance the clear referendum decision on the 13th AHV pension,” SP Co-President Mattea Meyer is quoted as saying by her party. Unlike the FDP, the SP announces that it will campaign in the referendum for the partial financing of the 13th AHV pension.