Facts
The complainants, Theres Halter-Durrer, Hans Rohrer, Daniel Eigensatz and Josif Zisyadis, filed a constitutional complaint against the amendment to the Tax Act of the Canton of Obwalden of 14 October 2005. The amendment introduced degressive tax rates for income from Fr. 300,000.- and assets from Fr. 5,000,000.-. The complainants argued that these rates violated the principle of equal treatment and the principle of taxation according to economic capacity.
The Canton of Obwalden had changed the tax rates to favor very high incomes and assets and to promote tax competition. The complainants requested that the tax rates in the degressive part be repealed or that it be established that they were unconstitutional.
Considerations
1. Admissibility Requirements: The Federal Court examines the admissibility requirements ex officio and with free cognition. The complainants are at least virtually affected by the contested tax rates and can demand that the direct taxes on income and assets be based on a tariff structure that complies with the principle of equal treatment and taxation according to economic capacity in all areas.
2. Unconstitutionality of Degressive Tax Rates: The new Obwalden income tax tariff is degressive from a taxable income of Fr. 300,000.-. This tariff violates the principle of taxation according to economic capacity and the general…