Effects of reforms difficult to foresee

Thomas Aeschi of the SVP party, who represents Zug in the National Council in Bern, was asked by a journalist of the Neue Zuger Zeitung what he thought the effects of the planned reforms to corporation tax at national level (USR III) might have on the canton.
 
“As it is very difficult to foretell how international companies will react to the abolishment of cantonal tax status, the financial effects of the reforms are very difficult to envisage both at national and cantonal level. According to current draft of the amendments, the canton of Zug will again have to contribute to the National Equalisation Fund (NFA), but this is unacceptable. This is why we representatives of Zug in the National Council will be doing our best to ensure the donor cantons to the NFA will not be additionally burdened by the USR III.”
 
When asked if he thought firms would move away from the canton, he said that this depended very much on the final wording of the URS III. “What is clear is that there will be greater competition internationally with regard to gaining a share of tax income from companies and in this respect it is essential that Switzerland as an economic location is not put at risk by additional regulatory measures as proposed by the SP and Green parties.”
 
Might the canton revert to becoming a primarily agricultural canton, as it once was?
“Whether the canton remains attractive for international companies or not depends on amendments to cantonal tax laws, which are expected go through cantonal parliament in 2017,” he replied.
 
As to what had to be taken into consideration in this regard, Aeschi said that the current draft should be amended in such a way that both interest-adjusted tax on earnings and the abolishment of pollution tax should again be included in the draft for the national law. Then, at cantonal level, a reduction of 2% in corporation tax should be aimed for, as mentioned already on a number of occasions by the director of finance in the canton, Peter Hegglin.