The current motto in the National Council is everyone against everyone. During the first of two meetings this week it became clear that the election campaign was already underway. So in the beginning things went all over the place when it came to taxes and inflation. But the opposition at least agreed that the government had responded wrongly to inflation. The housing package also caused heated debates.
The NEOS had specified the topic of taxes for the “Current Hour”. Club president Beate Meinl-Reisinger recalled that the coalition has not achieved its own targets when it comes to the tax rate. Citizens paid 16 billion euros more in taxes than promised – “thanks to their bad policies”.
After more than two years, it has still not been possible to reduce inflation in Austria, which is significantly higher than in most European countries. Instead, under the motto ‘whatever it cost’, the ‘big watering can’ was unpacked and ‘the people were showered with money’. This has of course fueled inflation enormously, says the pink frontwoman. She demanded a significant reduction in indirect labor costs from Finance Minister Magnus Brunner (ÖVP), so that there is more net than gross.
SPÖ warns against cuts to the welfare state
This was much to the dismay of the SPÖ. Their vice clubwoman Julia Herr said: “Whoever makes cuts will also cut back on the welfare state.” Addressing the government, Herr said it had done nothing to combat inflation, but it was not enough and it was not the right thing. Otherwise, 25 other EU countries would not be in a better position. Once again the SPÖ representative called for government intervention, for example through a rent freeze.
The government’s much-vaunted housing package did not include any affordable housing measure, SPÖ club president Philip Kucher said. “Anyone who believes that this government package will make housing more affordable is sadly mistaken. It does not provide a single measure for affordable housing.” The Social Democrats reluctantly agreed to the package.
Freedom between SPÖ and NEOS
The Freedom Party did so too, but they sided with the NEOS on tax issues. “Of course” the FPÖ wants to reduce indirect labor costs, former State Secretary Hubert Fuchs emphasized. With the Freedom Party there will be no wealth or inheritance taxes. Nevertheless, the ÖVP is already preparing an inheritance tax for a “standstill coalition” with the SPÖ. In general, Fuchs does not speak well of the People’s Party. Even the Social Democrats are “real savers” against this.
Finance Minister Magnus Brunner (ÖVP) shrugged off the opposition’s attacks, as did Green budget spokesman Jakob Schwarz later. They much preferred to talk about the various support measures that were granted and also advocated the ‘de facto abolition’ of ‘cold progression’.
But there is not a common denominator everywhere in the coalition. It would also be important for Brunner to introduce an exemption from capital gains tax after “a certain retention period”. That would be good for precautionary measures and would strengthen the capital market.
The subject of taxes will be discussed again in the election campaign
The Minister of Finance has so far been rejected by his coalition partner with this request, as have the Greens with their demand for a higher wealth tax. But apparently they also want to keep their topic on the agenda. Schwarz emphasized an imbalance between taxes on labor and wealth. The Greens therefore argue for a tax on inheritances worth millions.
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.
