Parliament Rejects Proposal to Increase Health Insurance Premium Deductions from Taxes

Deductions for health premiums will not be increased for single individuals, couples and children under the Direct Federal Tax (DFT). After the Council of States in December, the National in turn refused on Tuesday by 103 votes to 72 this Federal Council project which followed a motion tabled in 2017 by national councilor Jean-Pierre Grin (UDC/VD).

Berne proposed increasing deductions for single people from 1700 to 3000 francs, for couples from 3500 to 6000 francs and for children from 700 to 1200 francs. This would have resulted in reductions in revenue for the IFD of 400 million, or 315 million less for the Confederation and 85 million for the cantons.

The commission was opposed to the project. “The direct federal tax is a particularly progressive tax; more than 40% of households do not pay a franc and many pay little. Consequence: this reduction in the IFD will largely benefit wealthier households and less so others,” explained Samuel Bendahan (PS/VD) on behalf of the commission.

The Center and the Left rejected the project for this reason. A person earning the Swiss median salary, i.e. 50,000 francs, would only save 34 francs per year, calculated Baptiste Hurni (PS/NE). “The game is not worth the effort.” To pay the bill, it will be necessary to cut the budgets of the army or agriculture, this is unacceptable, added Markus Ritter (Center/SG).

The right believed that everything should be done to reduce the burden on households who pay direct federal tax. Like Jean-Pierre Grin. “It has been more than ten years since the standard deduction for a couple has been 3,500 francs for the IFD, whereas in most cantons it already exceeds 6,000 francs,” he argued. We must relieve the middle class whose purchasing power is reduced, added Thomas Aeschi (UDC/ZG). In vain.