ÖGB demands fair taxation: rich have to pay more!

ÖGB demands fair taxation: rich have to pay more!

The Austrian Trade Union Confederation (ÖGB) has announced that it needs a fairer design of budget consolidation to counteract the growing injustice that affects more and more workers: inside and private households. The focus is particularly on large fortune and companies with high profits that contribute insufficiently to state financing. Angela Pfister, the head of the economic department in the ÖGB, emphasizes that profitable sectors such as banks and energy companies already contribute to budget renovation, but many companies that benefit from state subsidies and tax advantages hardly contribute to consolidation.

Corporation tax was reduced from 25 % to 23 %, which escapes around 1.5 billion euros annually. In addition, planned expenses, especially for pensions, are not seen as a solution. Employees: Interior and private households are severely affected by measures such as deleting the climate monus and cuts in guest houses and family services. However, there are important funds in the budget for education, the labor market, the second mandatory kindergarten year, equality and future -oriented investments.

necessary tax adjustments

The ÖGB demands that large assets and group profits are used to generate additional income. A survey shows that more than two thirds of the population believe that rich should contribute more to consolidation. Pfister criticizes political forces that argue against fair taxation and emphasizes that models such as wealth or inheritance taxes prove to be socially balanced in international comparison.

As part of the government program for 2025 to 2029, the government plans to keep corporate tax rate constant at 23 %. The peak tax rate of income tax will be extended to 55 % by 2029, while the inflation adjustment of the tax tariff is partially exposed. From 2025, a tax -free bonus for employees: inside up to 1,000 euros will be introduced, which is not bound to a collective agreement.

debate about asset tax

The discussion about the reintroduction of a wealth tax has increased in intensity, especially after a proposal from the SPÖ. However, new specialist studies warn of the negative consequences of such a tax for the Austrian economy. In particular, it is pointed out that a pure asset tax as a substance tax does not correspond to the beneficial or equivalence principle. In addition, the inclusion of operational assets could lead to a competitive disadvantage for companies.

The collection of a wealth tax could also cause considerable administrative effort, and necessary exceptions and allowances could reduce the potential tax revenue. It is estimated that the introduction of a wealth tax of EUR 1 billion in the long term could lead to a decline in GDP by 0.65 % and to a decline in employment by 0.24 %

The interaction of these factors shows that both tax policy and social justice in Austria are at the center of the political debate. The question remains how both the fiscal needs of the state and the interests of the working population can be taken into account.