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Unformatted text preview: t a canton with
a lower-than-high financial capacity would be entitled to receive an additional part of the15 % to the basic rate for
equalising its position. The exact additional rate of grant is proportional to the difference between the two rates, here 15
%, weighted by the relative position of the cantonal index of financial capacity between 120 and 60 points. A canton with
100 points would receive (120 –100)/60 × 15 = 5 % in addition to the basic rate of 30 %, in all 35 % of the recognised
expenditure for the particular project in function "j". For Ei=120, the rate of grant is Smin; for Ei=60, the rate of grant is
Smax. 6.2.2. Revenue sharing The share of the Cantons in the federal government's tax revenue derives from several sources, but three revenue
sharing programmes only have equalisation components: for the federal direct tax (FDT), the withholding tax (WT) and
part of federal customs duties on petrol and motor fuel (DC). Historically, revenue sharing was generally implemented in
order to compensate for fiscal imbalance when a cantonal revenue source was centralized (Customs, alcohol monopoly,
coinage, stamp duties) or partly shared with the centre (direct and withholding taxation). With time, the main revenue
sharing programmes have been connected with equalisation repayments.
♦ The Cantons receive 30 per cent of the federal direct tax IFD (income, corporate profits and capital). 17 per cent is
allocated on the basis of origin, defined as the residence of the taxpayers, and 13 per cent according to financial capacity.
The repartition take the form of an exponential formula Pi IFD = 0,17 IFDi + [2.71828 −0.0192104 × Ei x 0,13 IFD
1000 1′ 0 ′00000
22 where P stands for the revenue sharing part of canton "i", with the number of population serving as a multiplicand.
♦ 22 84 They also receive 10 per cent of the withholding tax IA, net of collection costs: 5 per cent is allocated according to
population, and 5 per cent is reserved to the cantons with indices of capacity Ei < 100. The formula takes the forms
[100 - Ei ] and [(100 - Ei )2 ], the number of population serving as a multiplicand: Detailed revenue sharing formulas are given in DAFFLON, 1995, pp. 99,112 and 131. Commission on Fiscal Imbalance PiIA = 0,10 IA x [
H x [100 -Ei]
H x [100 -Ei]
+ x( i
2 Hf 4 ∑i Hi x [100 -Ei] ∑i Hi x [100 -Ei] 2 The federal government reimburses to the Cantons part of its revenue from customs duties and excises on petrol and
motor fuel DC. Half of the receipts from the "normal" duties and the total so-called "supplementary" duties are exclusively
attributed to road expenditures. 12 per cent out of this amount is reimbursed to the Cantons: as general payments for
93/100th and for international Alpine roads for 7/100th. Out of the 93/100th, 42/100th is allocated to equalisation, for the
cantons with indices of capacity Ei < 100. The formula takes the form [(100 - Ei )1,4 ] with total...
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