LETTERS TO THE EDITOR.
ECONOMIC LEGISLATION IN SWITZERLAND.
[To ram Emma or Tar ..sezermoz."]
Sra,-I observe in your issue of May 21st a letter with the above heading, in which the writer asks for information as to the rate of the Property-tax which has recently come into operation in the Canton de Vaud. I do not assume to be a political economist, but as the information asked for concerns more a matter of fact than of individual opinion, I shall endeavour, with your permission, to supply it.
By the Law of August 21st, 1886, the Swiss inhabitants of the Canton de Vand-for the foreign residents are not at present affected by it-pay four progressive State taxes, the initial figure of which is fixed annually by the Council, the ratio of progression, however, being always the same.
The first is payable on landed property (impit foncier), the initial figure for this year being 1 fr. per 1,000, thus :- From 1 fr. to 25,000 fr 1 fr. 0 o. per 1,000 „ 25,001 fr. „ 100,000 fr 1 fr. 50 c. „ 100,000 fr. and above 2 fr. 0o. „
The progressive rate, then, which, as I have said, is retained throughout all the following is 1 fr., 1-1 fr., 2 fr., and eo on.
The second State tax is payable on moveable property, and the initial figure for this year is 1 fr. 20 c. per 1,000, as under :- From 1 fr. to 25,000 fr 1 fr. 20 o. per 1,000 „ 25,001 fr. „ 50,000 fr 1 fr. 80 o. „ 50,001 fr. „ 100,000 fr 2 fr. 40 c. „ • 100,001 fr. „ 200,000 fr 3 fr. 0 c. „ „ 200,001 fr. „ 400,000 fr ...... 3 fr. 60 c. „ „ 400,001 fr. „ 800,000 fr 4 fr. 20 o. 800,001 fr. and above 4 fr. 80 o.
The third State tax is payable on rents and usufructs, pensions, and the like. The initial figure is sixteen times as great as that fixed on No. 2. It is, thus, this year 19 fr. 20 c. per 1,000, as under :-
From 1 fr. to 1,250 fr.... 19 fr. 20 o. per 1,000 „ 1,251 fr. „ 2,500 fr 28 fr. 60 o. „ 2,501 fr. „ 5,000 fr 38 fr. 40 o.
„ 5,001 fr. „ 10,000 fr 48 fr. 0 a. „ „ 10,001 fr. „ 20,000 fr 57 fr. 60 a. „ „ 20,001 fr. „ 40,000 fr... ........ 67 fr. 20 o. „ 40,000 and above 76 fr. 80 c. „ The fourth State tax is levied on the product of labour, the initial figure being eight times as great as that fixed on No. 2. For the present year, therefore, it is 9 fr. 60 c. per 1,000, thus :- From 1 fr. to 1,250 fr. 9 fr. 60 o. per 1,000 „ 1,251 fr. „ 2,500 fr 14 fr. 40 a. „ „ 2,501 fr. „ 5,000 fr 19 fr. 20 c. „ „ 5,001 fr. „ 10,000 fr 24 fr. 0o. „ „ 10,001 fr. „ 20,000 fr 28 fr. 80e. „ „ 20,001 fr. „ 40,000 fr 33 fr. 60m „ 40,000 and above 38 fr. 40o. „ It should be noted that, ae a fundamental principle of the above taxation, the initial figure of Tax No. 1 is always fixed lower than the initial figure of No. 2, whatever the latter may be. This is intended as an encouragement to the agricultural interest, and in consideration of the lower rate of income derived from landed property. In addition to these, the State taxes payable by all the inhabitants of the Canton de Vaud, dwellers in cities pay town taxes which are settled annually by the respective Town Councils.
I have no intention of taking up your valuable space by offering any remarks of my own on this somewhat powerful piece of legislation; bat I may mention two of the general
exemptions that are allowed in its operation, as illustrating the general principles which govern this method of progressive taxation :-(a.) From the tax on moveable property, the con- tributory can deduct a sum of 5,000 fr. of his rateable quota, as the reasonable and moderate value of his household furniture. (b.) From the amount payable under the Labour-tax, the con- tributory can deduct, by way of necessary expenses of living, a sum of 400 fr. for himself, a similar sum for his wife, and for each of his children who are minors, as well as for any person who is dependent upon him for the necessaries of life.-I am,
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