The turquoise-green coalition could reach an agreement on the distribution of the final third of the abolition of the cold progression earlier than expected. According to the negotiators, an agreement is being sought before the parliamentary summer break.
In the coming days, Chancellor Karl Nehammer (ÖVP) and Vice Chancellor Werner Kogler (Greens) want to finalize the distribution of the last third. The package is “a matter for the boss”, according to the headquarters of the two parties.
Cold progression was abolished in 2022
The abolition of the cold progression took place in 2022. This should ensure that the taxpayer is relieved every year and ultimately has more net than gross.
After an aid volume of 1.85 billion euros in 2023 and 3.65 billion euros in 2024, the Austrians will receive a total of around two billion euros in aid next year, according to the government parties. “This means that the relief from the change in the law on cold progression since its abolition amounts to approximately 7.5 billion euros,” both coalition partners emphasize.
The distribution of the third third must be agreed annually
Two-thirds of the abolished creeping tax increase will be automatically returned to taxpayers by raising the rate levels. Agreement must be reached annually on the distribution of the third third (currently around 650 million euros).
According to the People’s Party, the third third could increase all tariff levels (except the 55 percent) by around 4 percent. “This would ensure that the higher levels, where mainly people with a full-time job work, would be noticeably relieved,” emphasizes the ÖVP.
For the Greens, the emphasis is on lower incomes and the fight against child poverty. For example, this year the tax deductions will again be fully adjusted to inflation, so that people with the lowest incomes benefit relatively more from them.
Source: Krone
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