The Organisation for Economic Co-operation and Development (OECD) presented several reform proposals to the Austrian government on Monday. These include a different tax system and a lower national debt. However, the OECD assesses the economic and social situation as generally positive.
The economy has “developed well over the past 20 years,” OECD Secretary-General Mathias Cormann said at a news conference in Vienna on Monday. Living standards in Austria are higher than in most OECD countries and income inequality is relatively low because of public transfers. Nevertheless, inflation is currently high, despite the decline in inflation.
Low taxes on property, high on labor
The Organization of Industrialized Countries sees the need for a change in the tax system. In Austria, real estate is taxed “at a low level”, but the tax burden on work is high. That is why the experts recommend in their 140-page report to shift the tax burden from labor “to other bases”, including higher CO2 emissions.2– and property taxes. Property values should be updated regularly. Another suggestion: relax the strict admission requirements for certain professional services.
The organization is also concerned about Austria’s “relatively high” national debt. It recommends introducing a medium-term plan to reduce the deficit and debt. In addition, the pension system should be safeguarded, for example by linking the starting age to the life expectancy of the population.
More incentive for paternity leave
Reforms are also needed in climate, health, school systems and childcare. The report says that women’s participation in the labour market is constrained by “the inadequate provision of quality childcare”. Stronger incentives for fathers to take parental leave could also help to ensure that the time they spend with their children is more evenly shared between mothers and fathers.
The OECD recommendations are taken “very seriously”, said Economics Minister Martin Kocher (ÖVP), and the country report offers a “fresh look” at Austria.
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.
