The tax burden in Austria is comparatively high, and the gap vis-à-vis the EU average has widened. The tax structure exhibits a number of specific features: taxes on labour are high, both from the employee's and the employer's side, following an upward trend and markedly exceeding the...

A key objective of a reform of the Austrian tax system should be the improvement of the tax structure. This includes a shift in the revenue composition away from certain tax bases (exoneration) towards other bases, implying their higher taxation. The latter should serve not only short-term...

Framework conditions for fiscal policy remain difficult: besides the medium-term outlook of only moderate economic growth, the liquidation of Hypo Alpe-Adria-Bank International AG will weigh on the budget. The need for further subsidies to (partly) nationalised banks in distress cannot be ruled...