After the resignation of Chancellor Kurz, the government is – for the time being – saved. What luck, given that they are now presumably dry “Largest tax reform of the Second Republic” (© Sebastian Kurz). So Finance Minister Blümel was allowed to give his second budget speech, in which this reform was a focus.
Unfortunately, there can be no question of the government having the courage to tackle some of the urgently needed structural reforms that have been discussed for many years as part of the tax reform. The unsolved question of future pension financing, which requires increasing federal subsidies year after year, is an example.
After all, the government has built in noticeable relief for workers by lowering the second and third tax scale levels. However, this tax cut will be largely eaten up by the “cold progression” by 2024, as the government has failed to abolish it. The problem of growing into higher tariff levels would be solved once and for all if the applicable amounts were valorized – i.e. adjusted to the devaluation. After all, it is not set in stone that the tax brackets are immovable. As it is, it remains that de facto “Inflation is taxed” becomes, as the think tank Agenda Austria states in its current budget analysis: https://www.agenda-austria.at/publikationen/budgetanalyse-wo-bleiben-die-strukturreformen/.
Incidentally, those entrepreneurs who have organized their business in the legal form of a corporation will look through the fingers for the time being. They continue to pay a corporation tax of 25 percent, which is only expected to decrease by two percentage points in the coming year and by a further two percentage points in 1923. The minimum tax for GmbHs, which is also due if the company makes losses (!), Has not been abolished either. Although this is a small amount, it contradicts the tax logic in principle.
Signals in the direction of a Founder initiative one looks for in the “Greatest reform of all time” vain. In the increasingly proletarian country of the hammers (and hammers), in which a permanent position with the state is an ideal, but the establishment of a company as irresponsible knighthood of fortune and / or morally questionable, this should come as no surprise.
Instead of setting incentives for innovation and promoting start-ups, costly “eco-social” (in plain language: socialist) Set accents. The Greens have apparently prevailed across the board in the negotiations with the ÖVP. That at least 500 million expensive “Clean heating” – The program is a good example: it amounts to a loss of value as a result of the dismantling of functioning devices and systems. The “Scrapping bonus“, Which led to the scrapping of numerous absolutely roadworthy passenger vehicles, sends greetings. In any case, the funds thrown out of the window for this could not and cannot be invested elsewhere – namely better.
The targeted steering effect of the CO2– Pricing also seems questionable. Many working people who cannot get to their workplace without their vehicle or who – as sales representatives, for example – need the car as an operating resource are not offered any alternatives. A significant saving in fuel is therefore not to be expected as a result of the reform. If, contrary to expectations, the steering effect were to materialize anyway – for example because all Austrians suddenly discover their enthusiasm for cycling or develop a weakness for expensive electric vehicles, the tax authorities would face the problem of a massive tax shortfall, as the mineral oil tax would amount to around 4.5 billion euros. Brings in Europe.
It is alarming that the budget is again planning a huge deficit this year after the pandemic year 2020. All departments are allowed to spend more money than in the previous year. Obviously, the largest part of the political class knows how to spend the money of strangers, but has no idea how to earn it in line with the market.
To conclude, to quote the “Agenda Austria” again: “All in all, a budget that lacks the answers to the big financial questions of the future.”
