Our Austrian federal government calls the “eco-social tax reform” once again “the greatest tax reform of all time”. In this tax reform, the People’s Party pushed through a reduction in corporate income tax. Corporate income tax (KöSt) is the tax on the profits of corporations. This tax is to be reduced in two steps from 25% to 23%.
Who will benefit from this tax gift? The only beneficiaries of this gift are corporations. Take, for example, the largest Austrian corporation, OMV. This company made an annual surplus of 1.26 billion euros in 2020. Because of the Corona crisis, this profit was actually rather low, a third less than in the previous year.
If we take even this small profit as a basis, then the OMV shareholders will save 25.2 million euros per year simply through the tax gift of the corporate tax reduction.
What does that mean?
In 2020, the average gross annual salary in Austria was 44,000 euros. An average Austrian would therefore have to work tax-free for 572 years to receive such a gift.
It’s enough!
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Here is my suggested solution:
The global tax model:
The Global Tax Model (GTM)
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Vienna Calling 