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Old 07.02.2021, 23:56
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Neuchatel and Jura [and now Vaud] taxes & benefits

Hi Everyone,

It is hardly a secret that Neuchatel and Jura are among the highest taxed places in Switzerland. Neuchatel Cantonal income tax is particularly high: almost double of that in Zurich.

But why?

Do those cantons follow more social politics or is it the income / wealth structure of canton that forces such high taxes?

Thanks
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Old 08.02.2021, 00:01
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Re: Neuchatel and Jura taxes & benefits

There is no easy short answer that can be written here in a short EF post.

Neuchâtel is actually working very hard currently at changing the tax system and attract more people, and business. New plans will be published at the end of March.

Property and rents, on the other hand, are much cheaper than most places, especially if you move away from the lake.
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Old 21.02.2021, 00:15
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The motivation for higher taxes in Vaud

Hello ! I'd like to ask a little bit naïve question.
I wonder if the motivation for higher taxes in Vaud is formalized somehow by its authorities (for example, by higher spendings), is there something I could read?

While municipal taxes are sort of intuitive (less popular locations seem to have a little bit power taxes), cantonal taxes are not.
Is it due to the fact it is less populated, or is it to keep it underpopulated since the region is very attractive ? Or there are spendings that are unique to the region ? Or it is an attempt to keep the region less pro-business and more pro-elite and pro- international orgs ? Thank you for sharing your ideas
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Old 21.02.2021, 00:28
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Re: The motivation for higher taxes in Vaud

Because they are a bunch of socialists.

Tom
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Old 21.02.2021, 08:39
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Re: The motivation for higher taxes in Vaud

Higher? Compared to where? GE tax rates are generally higher.
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Old 21.02.2021, 09:48
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Re: The motivation for higher taxes in Vaud

Because that's what a majority of people vote for.
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Old 21.02.2021, 09:51
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Re: The motivation for higher taxes in Vaud

Because they can get away with it given tax rates in neighbouring cantons.
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Old 21.02.2021, 09:52
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Re: The motivation for higher taxes in Vaud

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Because that's what a majority of people vote for.
I'd love to know what you actually get compared to SZ, ZG etc.
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Old 21.02.2021, 10:00
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Re: The motivation for higher taxes in Vaud

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I'd love to know what you actually get compared to SZ, ZG etc.
I'm not actually in VD...

When we came our choice of location was Pfäffikon SZ or Rapperswil SG; it really wasn't difficult to pick Rapperswil, taxes notwithstanding.
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Old 21.02.2021, 11:00
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Re: The motivation for higher taxes in Vaud

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Because that's what a majority of people vote for.
Thank you! Do they rationalise it some how, if not in numbers than in some slogans ? Perhaps they need more money for the aging population, or social workers, or social aide, or they simply invest it ?..
It is really puzzling me as for a salary men the difference is so essential, a 100k salary in Lausanne is often a 120k salary in Zurich or Zug and taxes are nearly twice less, while rentals are 300-500 more expensive. Apart from the beauty of Vaud and the French language I cannot rationalize it, the infrastructure seems pretty much the same
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Old 21.02.2021, 11:04
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Re: The motivation for higher taxes in Vaud

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Because they are a bunch of socialists.
There is indeed a general perception that the more socialist a government is, the higher the tax burden on individuals and businesses. It's to be presumed that this extra tax is used to benefit the poorer, more vulnerable and needy members of society...

Within Switzerland the former, at least, appears to be true, but yes, it's a good question - how much better served are VD or other red-canton residents compared with how much extra tax they pay?
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Old 21.02.2021, 11:21
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Re: The motivation for higher taxes in Vaud

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There is indeed a general perception that the more socialist a government is, the higher the tax burden on individuals and businesses. It's to be presumed that this extra tax is used to benefit the poorer, more vulnerable and needy members of society...

Within Switzerland the former, at least, appears to be true, but yes, it's a good question - how much better served are VD or other red-canton residents compared with how much extra tax they pay?
Are taxes much higher per capita or are incomes lower? A higher percentage is required to pay for the same services, poor people paying their fair share
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Old 21.02.2021, 11:22
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Re: The motivation for higher taxes in Vaud

Yup, French speaking cantons are usually more socialists compared to the Swiss German part.

Vaud, for instance, help people in need way more than its neighbouring cantons ("revenu d'insértion", "PC familles", health insurance is capped at 10% of your income/salary, families get more help, etc.). It's a known fact that, should you find yourself without income and for some reasons need to ask for social aid, people would move to Canton Vaud as they are more generous ...

This translates in higher taxes for those who still pay them (for instance, about 40% of the people living in Lausanne don't pay taxes ... )
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Old 21.02.2021, 11:36
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Re: The motivation for higher taxes in Vaud

Apart from the "arguments" provided above, I have heard another justification that looks at least interesting: Zürich taxpayers are in general "richer", therefore the government can collect its required money by mandating a lower tax rate. In Vaud however, the government needs a high proportion of people's income to collect the same amount of money.

Of course, not all low-tax Cantons are richer than Vaud, and Geneva is actually quite rich "and" high-tax I think, so this doesn't apply there.
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Old 21.02.2021, 11:42
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Re: The motivation for higher taxes in Vaud

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I'm not actually in VD...

When we came our choice of location was Pfäffikon SZ or Rapperswil SG; it really wasn't difficult to pick Rapperswil, taxes notwithstanding.
That's because Pfäffikon is a dump.

What strikes me is that in VD, NE taxes are not only high for high incomes, but also for the lower income brackets. VS seems to tax the wealthy quite a bit, but then has fair rates for people with lower, middle incomes.
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Old 21.02.2021, 11:55
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Re: The motivation for higher taxes in Vaud

I found this link quite interesting regarding this topic:

https://www.cvci.ch/fileadmin/docume...SCALE_2019.pdf

It's in French but the graphs in page 20 are easily comprehensible.

They include examples of taxation for single/ married individuals in certain cantons including Vaud.

Last edited by javi.more; 21.02.2021 at 13:45. Reason: spelling
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Old 21.02.2021, 12:15
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Re: The motivation for higher taxes in Vaud

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I found this link quite interesting regarding this topic:

https://www.cvci.ch/fileadmin/docume...SCALE_2019.pdf

It's in French but the graphs in page 20 are easily comprehensible.

They include examples of taxation for single/ married individuals in certains cantons including Vaud.
Very interesting, thank you!

Basically, they have been saying (for years now) that taxed need to be lowered, but to be honest I don't see it happening now, with Coronavirus and all that ... if anything, taxes (all over the world) will probably increase
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Old 21.02.2021, 13:13
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Re: The motivation for higher taxes in Vaud

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That's because Pfäffikon is a dump.

What strikes me is that in VD, NE taxes are not only high for high incomes, but also for the lower income brackets. VS seems to tax the wealthy quite a bit, but then has fair rates for people with lower, middle incomes.
VS does tax deals with wealthy foreigners, about 25% of all such deals are in VS
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Old 21.02.2021, 13:30
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Re: The motivation for higher taxes in Vaud

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VS does tax deals with wealthy foreigners, about 25% of all such deals are in VS
That may be the case for the super wealthy. I just looked at tax rates for 100k vs 300k household income on taxjungle.ch
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Old 21.02.2021, 15:27
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Re: The motivation for higher taxes in Vaud

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Apart from the "arguments" provided above, I have heard another justification that looks at least interesting: Zürich taxpayers are in general "richer", therefore the government can collect its required money by mandating a lower tax rate. In Vaud however, the government needs a high proportion of people's income to collect the same amount of money.

Of course, not all low-tax Cantons are richer than Vaud, and Geneva is actually quite rich "and" high-tax I think, so this doesn't apply there.
Problem is that it becomes a vicious cycle if you start raising taxes and the wealthy leave. Although as I said earlier this is somewhat dampened by the fact that you would have to move a long way to lower your tax rate a lot from Vaud.

The central Swiss cantons couldn't do this even if they wanted as people would just avoid moving there.

I think tax competition is one of the best things about Switzerland .

Last edited by HickvonFrick; 21.02.2021 at 15:38.
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