According to the People’s Party, the input tax rate should be reduced from 20 to 15 per cent, the 48 per cent levy should be abolished and overtime should be fully exempted.
ÖVP goes to National Council elections with tax cut plan. As party leader Karl Nehhammer (ÖVP) announced at a press conference on Monday, the head of the Economic Association, Harald Mahrer, and the head of the trade union, August Wokinger, called for the input tax rate to drop from 20 to 15 percent. Also, the 48 percent tax rate is going to be abolished. Overtime should be completely tax-free.
In doing so, the People’s Party relied on the demands already drawn up for Nehamer’s Austrian plan. The chancellor justified his plan by saying that the difference between earned and non-earned income should grow significantly. To achieve this, the “broad core of society” must be liberated. A full-time bonus in the form of a tax credit of 1,000 euros per year serves as a performance incentive.
Keeping seniors active should also be beneficial. Mahrer said that all taxes and duties should be paid for them. Only accident insurance should be necessary for employment of pensioners.
Reducing additional payroll costs is primarily intended for employers. Its aim is to attract new companies to Austria. The objective is to bring companies into the country through the Incentive Act with tax incentives. Nehhammer is convinced that both entrepreneurs and employees will ultimately benefit: “It takes an efficient economy and a motivated workforce.”
The ÖVP obviously wants to enter the race for an attractive corporate tax. An automatic system should ensure that Austria is always at least 0.5 percent below the European average.
Mahrer again gave a “clear rejection” of “anti-efficiency” measures, such as the 32-hour week: “We need more work, not less, and we don’t want the lights on on property.” Tax ideas should also be rejected. “We stand for relief, not burden,” Wokinger said.
The ÖVP was convinced that it could finance its relief program as well, as the measures would stimulate the economy. After the election, Nehhammer wants to overhaul the tax system. The chancellor was very vague about whether he could end the CO2 tax. It is not debatable as an individual matter. (APA/eho)
