Focus on Austria as a tax location: Demands on the future federal government
A new study conducted by EcoAustria together with Deloitte Austria emphasizes the urgent need for tax reforms in order to strengthen Austria as a business location and drive economic recovery. In view of the complex tax landscape and the high tax ratio, far-reaching measures are seen as essential. The focus here is on reducing the burden on labor, for example by reducing non-wage labor costs and income tax rates. According to the study, such measures could not only increase employment by around 30,000 jobs, but also increase value added by 4.5 billion euros and thus significantly boost consumer and investment demand.
Reducing corporate taxes is also seen as a key lever for making Austria more attractive as a business location. A reduction in corporation tax to 21% from 2025 would provide companies with a relief volume of around one billion euros and at the same time create incentives for investment and innovation. This could also curb the migration of companies to countries with lower tax rates and make Austria more attractive to international investors.
The analysis proposes comprehensive savings and reforms to finance the proposed tax cuts. These include public administration, healthcare and the education sector, where efficiency improvements could save up to ten billion euros. Other measures such as the gradual increase in the retirement age or the revision of the climate bonus are also mentioned as important contributions to counter-financing. Support measures based on the watering can principle, which cause high costs and only have a limited effect, should be reconsidered.
Last but not least, the reintroduction of a wealth tax should be clearly rejected. The results of the study show that such a tax would inhibit investment and cause value creation losses of EUR 4.3 billion by 2030, while the expected budget improvements would be significantly lower at EUR 3.3 billion. From an economic perspective, there are numerous more effective measures that should be implemented quickly. The results of the analysis emphasize the opportunity and urgency of strengthening both the business location and public finances in the long term through targeted reforms
