At the beginning of May, Geneva's Grand Council voted in favor of a tax cut, mainly affecting the middle class, for whom the tax reduction will be most significant. The decision was taken after a vote of 65 in favor and 32 against.
Tax relief for the middle class
This bill provides for a reduction in income taxes for the people of Geneva ranging between 5,3% for the highest brackets and 11,3% for those in the middle class, with an average drop of 8,7%. These tax cuts are intended to improve citizens' purchasing power and stimulate the Geneva economy.
The right-wing majority in the Council, which supports this measure, explains that this tax cut is a necessary response to recent budget surpluses: 1.4 billion francs in 2023. This proves that the canton can afford to cut taxes without damaging its public finances.
The left in reserve
The left, on the other hand, fears that this tax cut will lead in the long term to deficits in essential public services, as a result of reduced tax revenues. Socialist MP Sylvain Thévoz is particularly critical of what he sees as an undue favor granted to high-income earners, to the detriment of public finances and social justice.
What next?
A mandatory referendum, following the amendment proposed by the right, will enable Geneva's citizens to vote on this tax cut. The left wished to amend the bill by requiring any tax changes to offset potential losses for the communes, but this amendment was rejected. If the referendum is successful, the tax cut will take effect from 2025.
