How can we foster more female labour market participation in Switzerland? And how can income taxation contribute to this? In order to answer these questions, Austria’s income tax system with its child allowances and deductions will be looked at closer to understand, to what extent this can be applied to Switzerland. Thereby, it will be discussed how Switzerland currently manages its income taxation of married couples and what kind of child allowances and deductions are currently in place.
Podcast on the Abolishment of the Real Estate Acquisition Tax in the Czech Republic by Martin Husek
In 1984, the Swiss Federal Court ruled that the marriage penalty, i.e. taxing married couples higher than unmarried ones, as unconstitutional. 37 years later, the penalty still exists, with over 700,000 couples in Switzerland affected. This has had serious implications for women’s labor market participation. While various alternatives to joint taxation are being discussed, individual taxation would not only eliminate any marriage penalties and bonuses, it would also incentivize female labor market participation most. If accompagnied by further policies such as affordable childcare and parental leave, individual taxation could play a significant role in the women’s struggle for equality.