2024-01-28 23:08:52
The Greens, FPÖ, SPÖ and NEOS were relatively unanimous in their criticism of the ÖVP’s tax promises: in particular, the counter-financing was questioned. NEOS party leader Beate Meinl-Reisinger said she no longer believes the ÖVP when it promises tax cuts. On the contrary, the tax rate has continued to rise.
ÖVP General Secretary Christian Stocker tried to outline counter-financing, but was unable to fully convince the group.
“In the center”: Who pays Austria? The parties in the tax fight
The rumors about early elections refuse to die down. However, the parties are louder and more specific when it comes to tax ideas. These also take up a lot of space in the speech by Chancellor Karl Nehammer (ÖVP). First and foremost, exonerations are being thrown into the election ring. But where will the money for government spending come from?
Disagreement about fighting inflation
There were clear differences of opinion on the question of whether a reduction in VAT on food would have cushioned inflation. Philip Kucher, SPÖ club chairman, criticized the fact that the government had not provided any relief for the costs of housing and food. The removal of VAT on food would have to be ensured with a powerful anti-inflation commission so that the relief also reaches people. Maurer argued that such a measure would not be accurate and would be very expensive.
A reduced VAT on food would not work as a means of combating inflation, said Meinl-Reisinger. Manfred Haimbuchner, deputy FPÖ party chairman, said Austria was in a catastrophic position when it came to inflation and the fight against inflation. He criticized the government’s “voucher mentality”. Tax cuts would be the order of the day, people have to be relieved. The state is the big beneficiary of inflation.
Austria does not have a revenue problem, but rather a spending problem, said Haimbuchner. The government is making it impossible to create property – and the middle class is being asked to pay the most. Stocker, in turn, defended the government’s policy because the purchasing power of Austrians has remained stable. He promised further measures against inflation.
Meinl-Reisinger wants a “relief coalition”
Meinl-Reisinger saw an urgent need for action on wage and income taxes. She pointed to the continued highest inflation rate in Europe, which is a competitive disadvantage for Austria. A “relief coalition” is needed – also when it comes to additional wage costs.
Kucher and Maurer warned about this: You have to take a close look at which parts of the non-wage labor costs you are referring to, said Maurer. Social security benefits, for example, would have to be guaranteed. Kucher also warned of poorer health services.
Greens and SPÖ for wealth taxes
Both in turn argued for wealth and inheritance taxes. Maurer pointed out that Austria is still below the OECD average when it comes to taxing assets and inheritances. A fair tax could create a new source of income and relieve the burden on low incomes. The broad mass of the population must be relieved with a “fair tax system,” Kucher also argued for a “fair” contribution from the super-rich to wealth and inheritance taxes. Stocker rejected this: Where there are wealth taxes, assets would move away, according to the ÖVP general secretary.
Not surprisingly, Maurer defended CO2 pricing, after all it is about preserving the basis of life. The costs of the climate crisis would have to be borne by everyone – especially those with low incomes. Haimbuchner said that the pricing was damaging to the business location and that production companies would move to China, for example.
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