6 minutes | Monday, 25 November 2024
On this week's MoneyMixtape, Victor Cianni from Alpian Bank looks at the impact of the decision by Geneva voters to pay less tax.
On November 24, 2024, Geneva voters approved an income tax reduction with 61.3% support. This new policy will lower taxes for all residents, with the average reduction at 8.7%. Middle-income earners will see the largest cuts (11.4%), while the wealthiest will experience a smaller decrease of around 5%. The right-wing parties proposed the measure to increase purchasing power and bring Geneva's tax rates in line with other cantons. Geneva, known for its high cost of living and taxes, will benefit from improved competitiveness. However, the tax cut will lead to significant revenue losses for the canton (CHF 326 million) and communes (CHF 108 million). While this creates more local spending power, it could also limit funding for public services and infrastructure. The success of the policy depends on whether residents spend locally, balancing economic growth with public investment needs.
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