The tax system makes extra work unattractive, especially for the middle class. Experts are now calling for reforms to reduce part-time work in Austria.
Austria is a country of part-time work. This is a huge problem in times of acute shortage of skilled labour. And it is indirectly promoted by the tax authorities, because extra work simply does not pay off, certainly not for middle-income earners. This is illustrated by a study by the business liberal think tank “Agenda Austria”: Those who increase their working hours by 100 percent only receive a 60 percent increase in salary. This puts Austria at the bottom of the list, ahead of Belgium (see chart below).
Study author Dénes Kucsera: “The Austrian tax system offers no incentive to work more. This is due to the progressive tax system, which also exists elsewhere. But Austria is still far behind. If you want to go from 20 to 40 hours, you get 85 percent in Sweden or Denmark instead of just 60 percent in Austria.”
According to Kucsera, the problem lies in the complicated tax system: you could tax the 13th and 14th salary in the same way, then it would be easier to get a remission. “We must finally relieve the middle incomes in particular. 12 billion would be possible.” A specific problem is also the high level of part-time work among women. An equally old number that no one rips off, despite repeated protests.
“All-day care is not fully guaranteed. That exacerbates the problem,” says the Agenda economist, who emphasizes again: “Currently, working overtime is not worth it.”
From the cold progression brings up to 4 billion
Wifo tax specialist Simon Loretz sees the problem in a more differentiated way. He emphasizes that in a progressive tax system such as Austria’s, it is inevitable that higher incomes also pay more. “You can’t escape it completely.” However, it should not be forgotten that a large part of the taxes flows into the pension system and that there is an annual tax reform with the abolition of the cold progression, which Turquoise-Green has implemented. .
This will have a major impact in the coming year in particular. With a volume of 3.5 to 4 billion euros.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
