Austria's Schieder Champions SPÖ 'Millionaire Tax
16 May 2013
Posted by: Author: Ulrika Lomas
Source: Ulrika Lomas (Tax-News.com, Brussels)
In the run up to the elections, Austria's Financial State Secretary Andreas Schieder has announced Social Democrat (SPÖ) plans to implement a structural reform of the country's tax system, to reduce the fiscal burden on labor.
The proposed tax reform would be financed by a "millionaire's tax" and by an inheritance tax, and would be implemented in the next legislative period, Schieder explained.
According to Financial State Secretary Schieder, the introduction of a tax on wealth in excess of EUR1m (excluding household possessions and corporate assets) and an inheritance tax on inheritances over EUR1m (with the exception of the sale of a business), would serve to yield between EUR2bn and EUR3bn for the state. Schieder maintained that EUR500m would flow from the imposition of an inheritance tax, while between EUR1.5bn and EUR2.5bn would be derived from the millionaire's tax.
Lamenting the latest tax proposals put forward by coalition partner the Austrian People's Party (ÖVP), designed to provide tax relief for families in Austria, Schieder warned that the measures would cost in the region of EUR11bn. This is simply not feasible given the budgetary situation and in view of the Government's commitment to a structurally balanced budget from 2016, Schieder stressed.
Schieder highlighted the fact that ÖVP plans to introduce a child tax-free allowance of EUR7,000 per child would predominantly benefit top income earners in Austria and cost up to EUR5bn, while plans to exempt employee participation from all taxes would cost a further EUR5bn.
In contrast, the SPÖ's plans to support and to promote families in Austria are cost neutral, Schieder insisted, citing plans to increase child benefit and to extend child care facilities.