I’d rather the cash registers never went. The tax burden in this country is at a record level – this also has a huge impact on the economy and the labor market. But what is there to do? Reviews by experts and the Minister of Finance.
Anyone who breaks the sound barrier is widely regarded as a hero. The only thing in common is that the heroes are sad right now: the Austrians, who pay tax at record levels. In the first half of the year, the state could look forward to a record turnover of 49 billion euros. “We assume that the 100 billion threshold will be broken by an expected increase in the second half of the year,” said Marcell Göttert of Agenda Austria.
Effects also on the labor market
There has been a dramatic increase since 2019 (see chart below). Businesses are especially affected. “The capital gains tax is exorbitant with a 72.3% increase.” This also has consequences for the labor market. That’s not the only reason the economist is against the SPÖ’s demand to skim profits from energy companies: “We don’t need additional taxes. If you think to intervene in companies, it is through capital gains taxes and corporate taxes. .” Addendum: “Austria is a country with the highest taxes anyway. Additional taxes are not necessary.”
Minister of Finance: ‘The reception is already there’
With this, Göttert struck a chord with Minister of Finance Magnus Brunner (ÖVP). “The BMF is very cautious about new and higher taxes – also when it comes to market interventions.” In 2030, a total of 28 billion euros would go to capacity expansion, security of supply and grid expansion. For example, in addition to the agenda, the NEOS has long demanded exemption from wage and income tax. Austria is way ahead here – in a negative sense.
The relief is already underway, so Brunner heads to the “Krone.” The second rate level will be reduced from 35% to 30%. The third rate level from 42% to 40%. “The exemption for employees and pensioners is the bulk of the relief measures of the eco-social tax reform. We unburden workers, especially people with low and middle incomes, families and retirees in the long term.”
Cold progression – abolition brings little
Cold progression remains a hot topic. Can you reduce the tax burden? According to the minister, the abolition will cost the state about 17 to 18 billion in 2026. Economist Göttert says: “Tax revenues will not fall just because of the abolition. They just go up less. The state shouldn’t have the money.”
It is money that the citizens are entitled to. A hidden addition, or as Agenda boss Franz Schellhorn metaphorically means: “The secret lover of the Minister of Finance.”
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
