They are sisters and have been state councillors since 2022, a first for siblings in Swiss history. Valerie Dietli, in charge of finance in Vaud canton, and Laura Dietli, security minister in Zug, were present on Wednesday at the forum set up as an opportunity for them to discuss the differences between the two cantons, which everyone seems to be opposed to.
The two Dittli sisters got involved in politics very early in the canton of Zug. But the eldest, Laura, aged 33, stayed there, while the youngest, Valerie, aged 31, left for the canton of Vaud.
However, the two politicians from the centre, now state councillors, have to face very different realities. Because there is a world of difference between Zug, the most populous canton in French-speaking Switzerland, and the tiny canton of Vaud, especially in terms of financial health.
How to become more economical?
Last March, Valérie Dietli presented the first red figure for the Vaud canton in almost 20 years, with a deficit of 39 million francs. The figure is well below the budgetary gap due to better-than-expected revenues, but there is still a deficit.
In contrast, Zug’s profits are set to increase from 285 million in 2020 to 461 million in 2023. The canton also estimated at the beginning of the year that its savings could amount to 4 billion francs by 2030, even though it has just announced a new tax cut and remains at the top of the most competitive cantons.
>> Also review the report at 7:30 pm on the Zug canton which wants to reduce health premiums for its population by 20%:
The canton of Zug wants to reduce the amount of health premiums for its population by almost 20% / 7:30 pm / 1 min. / July 11, 2024
Laura Dietli attributes this excellent financial health first of all to economic logic. “The canton has always been like this. For example, during my years on the Grand Council, we took many cost-saving measures. And then there is also the fiscal attractiveness, which allows us to keep and stay a lot of money. We are now able to provide social benefits,” she explains.
For Valérie Ditley, it is indeed “in the nature of Zug” to think about what is the “most effective way to spend public money”. A recipe from which the Vaud state councillor in charge of finances would like to take inspiration, although the realities are not the same, the canton of Vaud is very different in its size and its expenses, 11.5 billion francs in 2023.
“I don’t know if it’s really comparable (…) but we have to maintain our services while changing a bit the way we spend, especially within the state,” she analyzes.
Tax questions
Another major difference between the Zug and Vaud cantons is the tax policy. In the German-speaking cantons, taxation for businesses but also for individuals is generally the lowest at national level. In contrast, the Vaudois and Vaudois are still among the highest taxpayers in the country.
To address this, the Vaud canton has decided to reduce the personal tax by 3.5%, which will come into effect in 2024, and a new reduction of 1.5% could still be added in 2025 “under the reserve of the state’s financial situation”. The canton should also launch a counter-project on the initiative of employers and economic circles who are demanding a 12% tax cut on income and wealth.
>> Revisit the interview in the forum with Valérie Detlie in October 2023 on the 3.5% tax cut in the Vaud canton:
Tax cut by 3.5% in the Vaud canton: interview with Valerie Ditley / Forum / 4 min. / October 10, 2023
For Valérie Ditley, the situation in Vaud is once again not comparable to that of Zug. “They have two hospitals. We have more. They have a tunnel. We have several. The canton of Vaud can be compared to cantons such as Zurich or Bern, whose realities are somewhat similar. And there, we see that we pay much higher taxes in the canton of Vaud.”
According to the Vaudois state councillor, there is therefore an urgent need to act for the middle class. “We need reform. If we look at Zug (…), we see that too high taxes are not good. We must therefore find a more fair tax to attract taxpayers who will provide the financial basis for our canton and allow us then to expand our social status and our services,” she concluded.
Comments collected by Renaud Malik
Adaptation Web: Tristan Hurtig