It’s Christmas early for the taxable residents of this city: after paying too much taxes since 2012, a bill provides for a colossal refund.
Excellent news for the residents of this city. The coffers are overflowing, the public accounts are in good shape, and the record surplus will be paid directly to taxpayers; if the bill, which will be submitted to a referendum, is validated. Result: an annual reimbursement of the equivalent of 2,700 euros to each citizen, for 10 years. Never seen before!
Indeed, since 2012, public finances have shown an incredible surplus. No small surplus, but a cumulative total of 3.3 billion euros over a decade. The debt has been erased to the point that the debt ratio has gone into negative territory, in short an extremely rare occurrence. So how did this city get here? Thanks to a thriving local economy. The economic fabric attracts prosperous businesses and an active population, ensuring regular and solid tax revenues. The city has also chosen to keep 20% of surpluses each year, a reserve to cover possible economic crises or other budgetary unforeseen events.
At the same time, budgetary management is strict: no unnecessary spending or futile projects, but targeted investments and clear priorities. Moreover, despite a tax cut voted by referendum in recent years, profits continue to accumulate to the point that for the year 2024, an additional surplus of 114 million euros is planned… So, where do people live? these lucky few? In Basel-City, Switzerland. You will have understood, between this financial overflow, this economic attractiveness and this redistribution, everything works like a well-oiled mechanism.
Faced with this unprecedented situation, local elected officials have decided to take action. A motion was adopted to redistribute 80% of annual surpluses directly to citizens, in the form of tax credits. The objective? Reward taxpayers and stimulate the local economy by restoring purchasing power to households. Companies are excluded from the system.
This refund is reserved for individuals, based on a calculation proportional to the amount of their taxes. So, the more you contributed, the more you will receive in return. On average, this measure represents 2,700 euros per year per resident. With a population of around 200,000 people, this equates to a total redistribution of 268 million euros per year; but approximately “only” 70% of the population is affected.
