Tax debate escalates: ÖVP calls for a stop to all increases!

Tax debate escalates: ÖVP calls for a stop to all increases!

In Austria, things are simmering behind the scenes of the government negotiations between the ÖVP, SPÖ and Neos: negotiations over the budget have stalled while the economic situation remains bleak. Trade unionist Katzian from the SPÖ clearly rejects the idea of ​​consolidating the budget at the expense of the welfare state. The SPÖ demands that the “stronger shoulders” also have to bear a greater burden.

Tax increases are the focus of the debate

On the other side is Karl Nehammer, the ÖVP leader, who rules out the introduction of wealth and inheritance taxes, but does not consider the possibility of increases in other taxes to be unreasonable. Kurt Egger, general secretary of the ÖVP business association, warned that the location cannot tolerate higher taxes and that the “door to tax increases must be closed again”. According to Egger, negotiations must focus on relief that can stimulate investment and consumption instead of prioritizing budget restructuring, which does not create new jobs, as he told the Daily newspaper Austria stated.

In order to relieve the burden on companies, negotiations on reducing bureaucracy are already well advanced. The plan is to reduce the number of regular inspections for companies by a third. In addition, small businesses should benefit from a simplified receipt requirement, which could, among other things, allow a tax allowance of 30 euros for cash receipts. The process of company handovers should also be made easier.

These changes could be crucial for many entrepreneurs as political camps continue to disagree about the best way to deal with the current crisis situation. As Egger noted, it is urgently necessary to find new ways to counter the economic pressure and set the course for positive development, as in Small newspaper is to be read.