In Switzerland, taxes can vary quite sharply depending on the canton or municipality of residence
However, let's start with an indisputable fact: indeed, after paying all taxes and social security contributions, the Swiss worker generally has more in his pocket than a worker in almost any other developed OECD country. This conclusion is contained, in particular, in the final report "Taxing Wages 2017", published annually by the governing bodies of the Organisation for Economic Co-operation and Development (OECD). And if we compare Switzerland only with the European members of this organization, it will be an absolute leader.
In 2017, the average childless Swiss living alone spent only 17% of his monthly income on taxes, fees and social contributions, while the average for OECD countries was 25.5%. Citizens of Belgium and Germany have to share the most of their income with the state – they give up 40%. The lowest rates are in Chile (7%), New Zealand (18%) and Mexico (11%).
However, theoretical rankings are one thing, but real life is quite another. The portal Swissinfo.ch has never met a single Swiss who would say: we are quite satisfied with the level of tax burden. Every citizen of the Confederation, if asked this question, will of course say that they are groaning under taxes and generally do not know how to make ends meet. A contradiction? To some extent – yes, and this paradox has its reasons.
The fact is that the data coming from Switzerland to the OECD is literally the "average temperature in the hospital". Those who are truly familiar with real life in the country will immediately point out that the tax burden in the Confederation can be at very different levels depending on the canton and even the community or municipality.
In addition, every Swiss is obliged to pay quite significant mandatory amounts to non-state structures such as health insurance companies, or to the budget of the "second pillar" of the pension insurance system. Therefore, in the end, not much remains of an average salary of 6,000 francs.
Peter SIEGENTHALER.
Translation by Igor Petrov.