In an interview with the NZZ, Christoph Schaltegger argues that Swiss cantons loose revenue when new firms move in, due to badly structured inter cantonal revenue sharing (Finanzausgleich).
Tag Archives: Tax competition
Tax Federalism
In the NZZ,
The decentralized tax system, tax competition between cantons and communities as well as mobility of high income tax payers imply that the effective average income tax rate substantially falls short of the unweighted average tax rate on high incomes. In fact, the effective average tax rate is degressive for high incomes, see the second figure (which the authors reproduce from an article by Roller and Schmidheiny (2015)).