Austria's new coalition: hidden tax tricks and radical plans!
Austria's new coalition: hidden tax tricks and radical plans!
Österreich - On March 1, 2025, the “Krone” collected the views of leading economists for the new government program of ÖVP and FPÖ. The experts' assessments are mixed, with some warning of a possible EU deficit procedure and demanding the increase in the age of pension. A hidden control trick in the coalition pact, which could possibly increase taxes for employees and pensioners, is particularly worrying, as the experts from WIFO and IHS determine.
economic measures and asylum policy
In the middle of these economic uncertainties, the new coalition pact also wants to take clear measures. Laut oe24 sind niedrigere Steuern für Unternehmen geplant, wobei die Körperschaftssteuer (KÖSt) auf 19% gesenkt werden soll. Newly resident companies could only pay 15%. In addition, the capital gains tax (KEST) is completely abolished if securities are kept over a period of ten years. In the future, there will also be relief for small businesses.In asylum policy, FPÖ and ÖVP show a strict attitude: the parties want to reduce new asylum applications to zero if the constitution allows. In the future, social benefits should only be granted to Austrian citizens, and family allowance should also be linked to sufficient knowledge of German. These measures underline the clear course of the new government to significantly tighten the existing migration policy.
Another distinctive proposal gradually affects less unemployment benefit: the longer unemployment, the lower the performance. In addition, overtime should become more lucrative, since only 20% taxes are incurred from a certain point. With these measures, the coalition tries to stimulate the economy and at the same time to make asylum and social policy tighter.
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