A new report from researchers at Bern University has suggested that tax breaks, rather than the introduction of a minimum wage, could be the way forward for the rising numbers of working poor in Switzerland.
Although official figures (based on data collected in 1998) put the percentage of households designated as 'working poor' (i.e. where one or more members of the family work full time but do not earn enough to stay above the poverty line) at 4.5% (around 284,000 people), figures from the Swiss Labour Association have suggested that the number of Swiss living below the breadline has increased dramatically over the past few years, now coming in at around 500,000.
The authors of the Bern report- the findings of which were presented by the Swiss Economics Minister, Pascal Couchepin on Tuesday- have suggested that in order to alleviate the poverty experienced by groups such as single parents, large families, the self-employed, and those workers with lower levels of education, tax reductions worth SFr9,000 ($6,016) should be introduced.
Unions in Switzerland have long called for the introduction of a SFr3,000 monthly minimum wage, but the report suggests that tax breaks for the working poor would, in all likelihood, be more effective and less expensive than the introduction of a minimum wage plus an increase in child benefits.
Speaking to the Swissinfo news service earlier this week, M. Couchepin supported the assertions made in the Bern University study, arguing that a minimum wage could lead to job losses, and that in any case, there is no guarantee that such a wage would be sufficient to cover the household's budget.
'You can only fix a minimum salary according to the work you do,' he explained.
Responding to the Economics Minister's remarks, the Swiss Labour Association announced that it too supports the proposals to introduce tax breaks for the jurisdiction's working poor, although it will continue to campaign for higher wages and more social security for those in low-paid employment.
'It is definitely a good idea to reduce taxes, especially for families,' Brigitte Steimen, speaking on behalf of the organisation, told Swissinfo.
http://www2.swissinfo.org/sen/Swissinfo.html?siteSect=111&sid=1216766
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