20.2.3 The effect of cold progression with tariff adjustment: Switzerland

In the graph below, you can compare the current tax rates of one year (blue) with the tax rate of a previous year (red), which was adjusted with the inflation rate. Both the marginal tax rates (thin) and the average tax burden (thick) are being displayed. This comparison shows you by how much the tax burden has changed in real income. The income regulator gives you the possibility to display the comparison in Euro and in percent.

Due to the low availability of Swiss tax rates, only rates between 1999 and 2016 can be selected. The initial year must be before the end year.

The default setting gives you the maximum period. It can be seen that the tax policy of the last years has relieved the taxpayers, so that they have a lower tax rate even with constant real income.

Initial Year End Year

(c) by Christian Bauer
Prof. Dr. Christian Bauer
Chair of monetary economics
Trier University
D-54296 Trier
Tel.: +49 (0)651/201-2743
E-mail: Bauer@uni-trier.de
URL: https://www.cbauer.de