by Swiss cantons have very different tax bases, tax rates and spending. Until 2008, all cantonal taxes remained within cantons. Since then rich cantons have been required to support poor ones via the national financial equalisation mechanism. Next year, every French-speaking canton, with the exception of Geneva, will receive a financial boost from their wealthier German-speaking neighbours, reported the Federal Finance Administration (FFA) this week. The wealthy canton of Zug © Avkost | Dreamstime.comTotal transfers next year will add up to CHF 6.2 billion, 4.8% more than this year. All the French-speaking cantons except Geneva will receive money. Overall, 18 out of Switzerland’s 26 cantons will get money and 8 will pay. Over the recent year, economic disparities between Switzerland’s
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Swiss cantons have very different tax bases, tax rates and spending. Until 2008, all cantonal taxes remained within cantons. Since then rich cantons have been required to support poor ones via the national financial equalisation mechanism. Next year, every French-speaking canton, with the exception of Geneva, will receive a financial boost from their wealthier German-speaking neighbours, reported the Federal Finance Administration (FFA) this week.
Total transfers next year will add up to CHF 6.2 billion, 4.8% more than this year. All the French-speaking cantons except Geneva will receive money. Overall, 18 out of Switzerland’s 26 cantons will get money and 8 will pay.
Over the recent year, economic disparities between Switzerland’s cantons have widened. Basel-Landschaft is the closest to the national average. Residents there will indirectly benefit from an average of CHF 17 each.
As usual, Zug and Zurich will part with the largest sums of CHF 431 million and CHF 419 million respectively. Some of the funding comes from the federal government (CHF 4.2 billion), representing a further indirect wealth transfer between cantons – wealthier cantons often contribute more in federal taxes.
The seven other contributing cantons include Geneva, Basel-City, Schwytz, Obwalden, Nidwalden and Shaffhausen.
On a per capita basis, residents of Zug will contribute CHF 3,321. Schwytz (1,529), Nidwalden (1,081), Basel-City (820), Geneva (498), Zurich (270), Schaffhausen (69) and Obwalden (38) residents will also contribute.
Residents of Valais will be the most heavily supported. The per capita sum received there will be CHF 2,469, followed by Jura (2,422). Vaud will get a payment equivalent to 144 per capita.
The system relies on complicated formulae that look at both the inward and outward sides of cantonal finances.
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