The elections for the National Council are scheduled for the autumn. However, Chamber of Commerce Chairman Harald Mahrer already clearly rejects new taxes, such as inheritance or wealth tax. What is needed, in addition to reducing bureaucracy, is to make full-time work more attractive. Part-time jobs currently enjoy better tax treatment.
Part-time employees are very willing to work more. One in two people would be willing to do so if it were also financially profitable. In addition to the often lack of full-time childcare, many people are put off by the high tax burden. For example, if you go from 30 to 40 hours a week, that does not also mean a net third more on the stock market. Our (progressive) tax system is ‘responsible’ for this.
“The vast majority of people are not lazy, but they can do math,” Mahrer explains. There is therefore an urgent need for change in the form of better tax treatment for full-time workers. A very good model, for example, is a full-time bonus. According to a market survey, three quarters of full-time workers currently complain about the high tax burden. But childcare also needs to be improved.
To address the skilled worker problem and to “reward” overtime, overtime should be paid tax-free and continued work after retirement should be rewarded with tax exemption (no deductions), Mahrer emphasizes. We should not forget that the worker problem will only get worse in the future. About 250,000 workers from the “baby boom generation” will retire in the coming years.
Companies complain about the increasing burden of bureaucracy
Also, more and more companies complain about the increasing bureaucracy. Two out of three companies say that the amount of time spent on bureaucratic work has increased in the past two to three years. SMEs currently spend an average of almost 20 hours per week on bureaucratic work, which is almost 2.5 working days.
Population against new taxes and levies
Almost three quarters of Austrians, namely 72 percent, reject new taxes completely. Two thirds are specifically against inheritance tax. Capital gains are already taxed via the capital gains tax (KESt). “People who want to pass something on have often kept it out of their mouths,” Mahrer explains. And the head of the House also does not accept the argument that Austria is lagging far behind in the area of property tax. Other countries have lower income and wage taxes, which makes it easier to acquire real estate. “You cannot compare fruit with vegetables,” says Mahrer.
Inheritance tax would affect SMEs
An inheritance tax as demanded by some parties would hit local small and medium-sized businesses (SMEs) hard. Savings would eventually be taxed with capital gains tax, while real estate transfer tax (GrESt) would be due. Only the businesses would remain. Mahrer: “This is an attack on local SMEs. Should part of the business be sold? It would be like slaughtering the cow that gives milk.”
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.
