Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-02-14
SWISS SYSTEM OF TAXES.
Graduated or Progressive Taxes In Five
Cantona.

0roouaSeu or frogressiv0 Taxes In Five
Cnntons.
An interesting report from the British lega-
ton in Bernie deals with the different systems
OF graduated taxation existing in Switzerland
These vary greatly in different cantons, says
the London Times, and in some the principle
has not vet been applied In five cantous--
Zurich, Vaud. Geneva, Uri and the 0risons--
complete systems Of graduated or progressive
taxes exist; in several others, a. Glarus, Zug,
Solothurn and Obwalden, fortunes above a
certain amount are subjected to somewhat
higher rates. while in nearly every canton
attachments varying IN amount are granted on
fortunes and incomes under fixed standard.
The report deals only with the laws OF the five
cantons above mentioned. In none does the
income tax correspond to the English tax Of
that name. 1t Is, rs rule, restricted to in
comes derived from pensions, annuities, usu-
fructs, salaries, wages and the earnings of labor
generally, whereas income derived from CAPITAL
Is taxed on its capital value either as general
tax on fortunes (''Vermogensteuer' or in the
few csntons in which distinction is made be-
tween real and personal estate, as tax on per-
sonalty. 1t Ii, therefore. rather in the shape of
n tax on landed property and on capital that
the principle Of progressive taxation has been
applied to the fortunes Of the Weather MEM
bers OF the community, while the progressive
and professional classes.
The report is mainly occupied with q descrip-
ton Of the system as it exists in Vaud because
OF the thorouShness Of the application Of the
principle there. In that canton the tax was
introduced in 1886. all real property except
that which is state and communal, coming
under It, The first class includes properties
under 81, 200 in value, the second between
81 900 and $4,000, and the thirc over "a. 900,
the amount Of any mortgages being deducted
In order to determine the class. The amount
OF the tax is fixed by the grand council Of the
canton every year, fixed progressive rate
being always maintained between the three
classes. At present the rate is E1 per FL 900
for the first class, 81 los. per 81 900 for the
second. and e. per 81, 900 for the third
Personal property is also in three classes
personality proper, which is taxed on its capital
value. incomes and usufructs, and proceeds of
labor, each of which il again divided into seven
classes. In the class Of incomes, which NAV be
taken as an illustration, the tax per fl00 in
the seven classes Is CO, f3, "a, Is, &c. 81
and ES, respectively. Thus, a man With E2,0 900
a year in this class would pay E16O; with E 900,
f10; with $500, $50; with $500, E12; with f2OO,
fS; with G100, f3, and with $50, f1. Tho
population Of the canton is 247, 655, and the in
crease of revenue from the tax is about f6 000
The radicals point to this as proof Of the
successful working Of the system, but their OPP
ponents allege that this fiscal gain is more than
counterbalanced by the injury caused in GER
tain cases to local trade, and more especially
by the great depreciation in the value Of land
due to the innovation. Some wealthy families
have. it is said. preferred to leave the canton
rather than face the consequences of the new
law, while many others regularly close their
houses for nine months in the year in order to
evade it, Foreigners, too, are less anxious than
they were to reside in the canton, and the value
Of many properties has fallen so per cent. 1t il
importan. also to note that the proposal to in
no int rntac kol<
a referendum by an overwhelming majority.
1t was thus to a peculiarly democratic instf-
tuition that the weathier classes OF the cantoA
owed their escape from a threatened increase Of
their fiscal burdens, while. in striking llustra-
ton of the anomalies so often presented by tn
power by a very large majority on be SAM
day that witnessed the rejection of The mose
important measure which it had passed in ths
previous session of the cantonal grand council