In the annual OECD comparison, Austria has the third highest tax and excise duty ratio. The so-called ‘tax wedge’ was 47.2 percent last year. This value is the difference between the employer’s labor costs and the employee’s net salary.
The average value for the 38 OECD countries was 34.8 percent. In general, the tax wedge for individuals or households with children is lower than for individuals without children. Many governments offer tax breaks or cash benefits to households with children. Austria is therefore still in the middle of the pack when it comes to married single-income couples with two children. However, for couples who both earn money, this value is higher.
Here you can see how high the taxes and levies on work are in other countries.
Average income decreases
In an OECD comparison, Israel, Switzerland, Korea and the US had the lowest tax wedges. Overall, the average net income of single people fell. This was, for example, the result of higher income taxes and historically high inflation. In many countries, the tax system does not automatically adjust to inflation, which means that employees are taxed more heavily.
NEOS: Tax reform necessary
In light of the data, NEOS called for “comprehensive tax reform.” The party said, not for the first time, that indirect labor costs must be reduced and cold progression must be completely abolished. There would also be a need for “tax incentives for full-time work,” such as tax exemptions for overtime, company spokesman Gerald Loacker said. “If it pays for people to start working more again, they will do so.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
