Why politicians love VAT – and what that costs us

Where does the money for the 13th AHV pension come from? The large financing debate begins in parliament on Thursday. The focus is on a tax with VAT, which we all pay, but usually hardly perceive. Even though she pours quite nicely – not just for the state.

She flushes billions into the state treasury. But even though they pay most of us every day, we usually don’t notice them at all: VAT.

In the past year, the income added up to CHF 27 billion – the tax, along with direct federal tax, is by far the largest source of money in the federal government.

And it is an important support for the AHV. Around every sixth VAT francs flow into the financing of the AHV pensions. Or otherwise: with every Kafi that we drink in the Beiz (price: 4.50 Fr.), we pay about 6 centimes to the AHV.

In the future it should be a little more. The reason for this is the 13th AHV pension. It will be paid for the first time next year. But how the federal government is supposed to finance it is still open over a year after accepting the popular initiative.

Where do the VAT billion flow to

The Council of States will decide on Thursday. There are several suggestions on the table – they all have an increase in VAT. If it is based on the Federal Council, the additional expenditure should be financed solely by higher VAT percentages. The regular sentence should increase from 8.1 to 8.8 percent. The social commission of the Council of States, on the other hand, suggests relying on a mixed solution: an increase in VAT in combination with higher wage taxes. The Federal Council also proposes to the VAT lever, among other things, in the upcoming AHV revision.

The VAT billions are not only in demand for stuffing financing gaps in retirement provision. The federal government also finances premium reductions and the maintenance of train lines or train stations. From 2011 to 2018, VAT income also went into disability insurance. And there is currently an increase in VAT in favor of the army.

What speaks for VAT – and what about it

The business associations therefore insist to finance the 13th AHV through a increase in VAT, while the unions would prefer to only rely on higher pay levies. The argument: This solution is more social because well -earning -earning is asked to pay relatively stronger.

The advantage of VAT, on the other hand, is that everyone has to participate in the additional costs, including pensioners. Whereby: the older you are, the less strongly gives the increase. Because you simply have less life and therefore years of life. « An increase in VAT can therefore hardly be borne by older generations, » says Veronica Weisser, Pension expert of UBS. « Both an increase in VAT and AHV financing via wage taxes, especially young and future generations, deprives consumer and savings opportunities for decades. »

VAT also has its price – although it remains hidden at first glance.