Interesting idea – tax competition like in Switzerland would be attractive

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Finance Minister Magnus Brunner can imagine that the federal states will collect certain taxes themselves, such as the property tax, instead of the federal government. And even introduce different tax rates, as has long been customary in the Swiss cantons.

What does LH Thomas Stelzer, the state finance officer of Upper Austria, who is also the chief negotiator of the Länder in the negotiations on the new financial settlement between the federal, state and local governments, say about such tax competition?

“In principle, I am always open to new ideas. We in Upper Austria would probably have an advantage with something like that when it comes to a really profitable tax, because of our economic strength and our location structure. But I also know that everything possible is said at the beginning of the financial settlement negotiations,” says Stelzer.

Does that mean extra bureaucracy?
But the question is also: “What would such a system mean in terms of additional administrative apparatus? Now it is clear: the federal government is responsible for collecting the collective taxes, the tax authorities do that. But if we do that in the federal states, is that an extra bureaucracy – or how are we going to organize that?”

Source: Krone

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