On November 24, 2024, the voters of Geneva will be asked to vote on a proposal to reduce income tax for individuals. This measure, presented by the Conseil d'Etat, aims to reduce the tax burden on taxpayers, with reductions ranging from 5.4% to 11.4% according to income brackets, for an average of 8.7%.
The stakes of lower taxes
By reducing the tax burden, the Council of State aims to increase the disposable income of households, thereby boosting consumption and, by extension, the local economy. A more competitive tax system could attract new residents and businesses, potentially strengthening the economic dynamism of the canton.
The reform also aims to correct certain inequalities by offering more significant reductions to middle-class incomes, with reductions of up to 11.4% for taxable income brackets between CHF 76,812 and CHF 125,793.
Council of State position papers
The Geneva Council of State strongly supports this tax reform. According to Nathalie Fontanet, president of the Council of State and Minister of Finance, more than half of taxpayers will benefit from a tax reduction of at least 10%.
Geneva will remain a high-tax canton
She emphasizes that despite this reduction, Geneva will remain one of the cantons with the highest taxation in Switzerland.
The cantonal government considers this measure relevant, especially due to the budget surpluses recorded in recent years, including a surplus of 1.4 billion francs in 2023.
Rising deficit
Despite recent surpluses, concerns persist about the impact of lower taxes on public finances.
The City of Geneva's draft 2025 budget provides for a deficit 63.4 million francs, largely attributable to the planned tax cuts. Tax losses are estimated at CHF 326 million for the canton and CHF 108 million for the communes.
Conclusion
The proposal to reduce income tax in Geneva represents a major issue for the canton. While it promises to improve the purchasing power of taxpayers and enhance economic attractiveness, it also raises the question of the sustainability of public finances.
The vote on November 24 will be decisive for the fiscal and economic future of Geneva, and voters will need to carefully weigh the potential benefits and risks associated with this reform.
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