In 1973, the Austrian federal government under Chancellor Bruno Kreisky introduced value added tax in Austria. The socialist finance minister Hannes Androsch opts for a tax rate of 16% (reduced 8%). The tax is levied on all products. The population is fully informed. Today the tax rate is 20% (reduced 10%) on all goods and services. With an ammount of around 30 billion euros, VAT accounts for a third of the state revenue of the Republic of Austria.
In 2019, the German government under Chancellor Angela Merkel plans to extend this value added tax to all financial products in Europe. The Social Democrat Finance Minister Olaf Scholz opts for a tax rate of 0.1% (reduced 0.01%). The tax is to be levied on 1% of all products (the exceptions are 99%). Tax revenue in Austria would amount to 0.033 billion euros. “Transaction tax is dead,” cheers Austrian conservative daily “Die Presse”.
P.S .: The Austrian Socialist Party won the subsequent election in 1975 with an absolute majority.
P.P.S.: “The world financial transactions have jumped from 1.1 quadrillion US dollars in 2002 to 2.2 quadrillion US dollars in 2008. 95% of this is speculation.” (Wikipedia 16.12.2019)