Revenues from Asset-Related Taxes in Austria at an All-Time Low

On average, in the OECD, the share of revenues from wealth-related taxes in total collected taxes and levies is 4.9 percent. In Austria, even before the abolition of the wealth tax and inheritance tax in the 1990s, the share was only 2.72 percent, but since then it has fallen even further to now below one percent. These mainly come from property and real estate transfer taxes. According to the ÖGB, increasing wealth-related taxes to the OECD average would bring in around 8 billion euros in additional revenue. This roughly corresponds to what the Fiscal Council predicts as an additional savings requirement by 2028.

Discussion on Wealth and Inheritance Tax Rekindled

The union wants to generate this through a wealth tax and an inheritance tax. Together, these would bring between 8.3 and 9.2 billion euros in additional tax revenue. "This would not only increase the share of wealth-related taxes to the OECD average and thus ensure more tax justice, but also distribute the burden of the upcoming budget consolidation in a socially just manner," said the ÖGB. However, an increase in the property tax, which is also wealth-related, is not part of the demands. It is argued that this tends to affect the general population, as it can also be passed on to tenants as part of operating costs.

The demand received support from Volkshilfe Director Erich Fenninger: "We urgently need funds for a solidarity-based budget consolidation and effective inflation control. Wealth-related taxes create financial leeway for investments in the welfare state and for effective poverty reduction, such as child basic security," he said in a statement.

Criticism from the Federation of Austrian Industries and WKÖ

Sharp criticism of the renewed initiative came from the Federation of Austrian Industries. "Those who call for new wealth and inheritance taxes in economically challenging times are not pursuing responsible politics - but ideological class struggle on the backs of the domestic middle class," it said in a statement. Austria does not have a revenue problem, but an expenditure problem.

Austria does not have a revenue problem, but an expenditure problem, said Chamber of Commerce Secretary General Jochen Danninger, who called the debate on wealth taxes "old, ideologically charged, and out of touch with reality." For ÖVP Economic Association Secretary General Kurt Egger, the demand is even "poison for Austria's business location and a frontal attack on performance and property."

(APA/Red.)

This article has been automatically translated, read the original article here.