In Switzerland, my understanding is that married couples with dual incomes are generally taxed at a higher rate than those with a single income (for the same given total household income). I am trying to understand the subtleties of this.
If I do the math for, say married couple with 2 kids earning 100k/year in Vaud, I get the following rates for income tax at the source:
- 8.22% (single income)
- 12.06% (double income), i.e. 3.84% higher
- (for completeness, it is 11.3% for unmarried)
This ~4% difference seems fairly typical across the cantons I’ve looked at.
So, if, for example, Mom goes back into the workforce after having kids, there is a ~4% penalty to the family. If Mom works, say, 1 day in the year and earns 200Fr, does this still apply? Or is there some threshold? In this example, it seems like the Mom needs to earn 3840Fr before her efforts start having a positive effect on the family’s finances (simple calculation not considering the higher bracket due to higher total income)…
Or am I missing something?
This taxation policy seems to be quite anti-woman in the sense that it pushes women out of the workforce (along with some other policies and traditions in this beautiful country such as the bloody 1.5hr break in the middle of the school day where you need to find something to do with your kid…but I digress).
I don’t think they took this particularity of tax law into account, but here is some relevant reading (spoiler alert, Switzerland is last in Europe): https://www.unicef-irc.org/family-friendly
I don’t mean to come across as being a disgruntled expat (I love it here and see my future here), but Switzerland is well behind the curve in this department - perhaps last Friday’s events will give some impetus for slightly faster change.