Three years ago, the then government, consisting of ÖVP and the Greens, celebrated itself to the abolition of cold progression. In the fight against the budget deficit, the money is meant to relieve the employee to renovate the state budget. The trade union -related momentum institute now calculates how much easier that would be, the state would fully withhold the cold progression.
Suddenly the federal government would have income of 7.6 billion euros, according to a current analysis of the institute. This can save the federal government some unpleasant cuts: the non-valorization of family services and child deduction, the increase in contributions of health insurance policies, the increase in e-card costs, the cutbacks in public transport and the increase in air conditioning.
Moreover, there would still be more than half a billion euros, with which, for example, administrative support for schools, investments in digitization or the promotion of e-mobility can be financed, the authors of the study calculate.
Lower extra pollution, big effect?
Momentum sees a positive effect. The re -introduced third of the cold progression only costs a household in the lowest income on the fifth in the coming year. In the next four years there will be a total of 108 euros – as much as the highest 20 percent of income will pay more in the first year alone.
The extra contribution of the best -paid fifth of the households is a total of 924 euros or 0.34 percent of the annual income in the next four years. For low paid, the extra burden of 0.15 percent is also lower in relation to income.
Cold progression means the phenomenon that increases the annual wage, leads to extra load (by moving to higher control classes). The abolition of this phenomenon means that the tax limits and reimbursements are increased annually by two -thirds of inflation. The third third reserves the State, but must actually be used for further lighting for employees, at least it was said under Turquoise Groen.
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.
