Industry: April 5 is "Tax Payment Day"

IV-GS Neumayer: 20 percent of Austrians make a disproportionate contribution to the community – the tax system has a massively redistributive effect – it is necessary to relieve the work factor

Vienna (OTS) – On April 5th, one in five people in Austria had already paid as much income tax as the average of the population for the whole year – this is the result of the current calculations of the Federation of Austrian Industries (IV). “In our country, people with a slightly above-average income make a disproportionate contribution to our community. Today we want to pay tribute to those people who make a significant contribution to financing our common good,” affirms Christoph Neumayer, Secretary General of the Federation of Austrian Industries.

From a gross monthly income of around 3,400 euros, one is already among the top 20 percent of earners in Austria. This means that you are also one of the 20 percent who are responsible for 77 percent of the total revenue from income tax in Austria. “We’re talking about a specialist in industry, a high school teacher, a doctor or a mechatronics technician. With their taxes, together with our companies, they make a significant contribution to financing the social infrastructure,” says Neumayer. Tax Payment Day is also a reminder for politicians to be careful with the hard-earned tax money.

Austria is one of the countries with the highest tax ratio in the EU. “It’s not about playing off different income groups against each other. Rather, the Tax Payment Day should show how our progressive income tax system works and contributes to the redistribution of market income,” adds the IV Secretary General. Calls for further redistribution are “a clear misunderstanding” in a recurring envy debate. The introduction of a wealth tax would directly affect the Austrian middle class. This is also confirmed by a survey conducted by pollster Peter Hajek in 2022, in which 72 percent of those surveyed spoke out against an annual wealth tax on private property such as houses, apartments, jewelry, etc.

“Especially in times of a shortage of workers and skilled workers, the primary concern is to ensure that performance pays off again. This requires tax incentives, for example when changing from part-time to full-time employment or for working beyond retirement age, instead of additional taxes and burdens on the work factor,” says Neumayer, emphasizing in conclusion: “The aim must be to save Austria on taxes – and tax quota away from a burden location towards an attractive industrial location”.