Tax template 17 is linked to AHV restructuring

The deal was put together by the Economic Commission (WAK) of the Council of States. Finance Minister Ueli Maurer spoke of a "small work of art of political compromise". In fact, the left and the middle class were united, albeit without enthusiasm. It was not a good model, said Martin Schmid, member of the FDP Council of States for the Grisons. But against the background of the rejected Corporate Tax Reform III, it was the best solution. Peter Hegglin (CVP/ZG) agreed, "because we need a workable solution for a serious problem". Anita Fetz (SP/BS) spoke of a "reasonable approach". Roberto Zanetti (SP/SO) called the work of the
Commission a "great moment of parliamentarianism".

The alliance of convenience came about under pressure from abroad: Switzerland must abolish tax privileges for status companies that are no longer accepted internationally. These are threatened with a massive tax surcharge. In order to prevent companies from migrating, the Swiss tax climate should generally be milder. Parliament made a first attempt with the Corporate Tax Reform III, but it proved popular with the people. The Federal Council has made improvements in tax bill 17. In addition, the cantonal implementation plans are now known, which allows an approximate cost estimate to be made. As a social compensation, the Federal Council proposed higher family allowances.

However, the WAK was of the opinion that this would not be sufficient. It convinced the Council of States to allocate CHF 2 billion to the AHV as social compensation. This corresponds to the estimated costs of the corporate tax reform at federal and cantonal level. The funds for the AHV come from employers and employees and from the federal treasury. The social security system would thus slip into the red three to four years later. In addition, the Council has accommodated the victors of the vote by increasing the taxation of dividends and limiting the tax-free repayment of capital investment reserves. High-tax cantons may allow an interest-adjusted profit tax. Only Zurich will probably benefit from this.

The right-wingers are angry about the AHV deal. Peter Föhn (SVP/SZ), who had initially agreed to the solution in the Commission, warned against linking two failed proposals. Marrying sick people had never been successful, he said. Alex Kuprecht (SVP/SZ) criticised that this would incapacitate voters. Thomas Minder (SH/partisan) said that the procedure was perhaps not exactly madness, "but it was stupid. For Werner Luginbühl (BDP/BE), it is a declaration of bankruptcy if majorities are bought with countertrades. SVP Federal Councillor Ueli Maurer, on the other hand, praised the Commission's approach. There was not much applause for the result, but it was politically feasible. They are trying to keep companies in Switzerland and there is money for the AHV. That was necessary anyway. "I think that will make the tax bill capable of winning a majority," said Maurer.

The Council of States has left the basic concept of the tax proposal unchanged. The cantons will receive around one billion francs more from the federal treasury. This gives them scope for a general reduction in corporate taxes. Companies can also be relieved with a patent box, additional research deductions or hidden reserves. The Council of States approved the Commission's compromise by 35 votes to 5 with 5 abstentions. The bill will now go to the National Council. It is to be revised in the autumn session. A possible referendum vote would take place in May 2019 at the latest. If there is no referendum, the first elements of the bill should come into force at the beginning of 2019.