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In the canton of Zurich, it will soon be possible to have taxes deducted directly from wages.
sda
Those who don’t pay their taxes on time can quickly end up in debt collection. Following the “yes” vote on automatic tax withholding in Basel-Stadt, the model is now set to be introduced in Zurich as well. The idea is dividing politicians and the public.
Following the “yes” vote in Basel-Stadt, female politicians in the canton of Zurich also want to introduce automatic tax withholding from wages. Supporters see it as a way to combat debt—critics warn of increased bureaucracy. The “Tages-Anzeiger” was the first to report on the plan.
blue News answers the most important questions.
On Sunday, Basel-Stadt became the first Swiss canton to approve automatic tax withholding from wages. In the future, employees will be able to voluntarily have a portion of their gross wages transferred directly to the tax office before the money reaches their bank account.
The model is designed to prevent taxpayers from being surprised by high bills at the end of the year. Instead of having to pay the entire tax bill later, it is paid on an ongoing basis throughout the year.
Three members of the Zurich Cantonal Council from the SP, AL, and EVP parties have already submitted a parliamentary initiative. They argue that tax debts are among the most common types of debt.
According to the Federal Statistical Office, about nine percent of people in Switzerland live in households with tax arrears. Hundreds of thousands have already been subject to debt collection proceedings due to unpaid tax claims. Proponents want to prevent such problems before they even arise.
The plan is for a so-called “opt-out” solution. Employers with at least 50 employees would transfer a fixed percentage of wages directly to the tax office.
Those who do not wish to participate could actively opt out. Smaller companies could participate voluntarily. The exact amount of the deduction has not yet been determined and would have to be set by the cantonal council.
Yes. For many foreign workers, this system has long been part of everyday life. For them, withholding tax is deducted directly from their wages.
Proponents therefore argue that the technical infrastructure already exists. In many neighboring European countries, too, income taxes are collected directly through payroll.
Supporters of the model describe it as an effective tool against excessive debt. Those who pay their taxes on an ongoing basis are less likely to run into financial difficulties.
In addition, it could ease the burden on tax offices, debt collection agencies, and debt counseling services. People on tight budgets would benefit in particular, as they would not suddenly have to come up with several thousand francs to pay a tax bill.
Critics describe the model as an unnecessary encroachment on personal responsibility. Those who have their finances under control can already set up a standing order or set aside money for taxes each month.
In addition, business representatives warn of additional administrative burdens for companies. Employers would have to introduce new processes and take on additional tasks.
The initiators do not have enough votes on their own. The Green Liberal Party’s (GLP) stance is therefore likely to be decisive once again.
A similar proposal was made in the Zurich Cantonal Council ten years ago. At that time, the idea was initially supported but later failed decisively in parliament. Whether the political majorities look different today remains to be seen.
