Plan presented
SPÖ concept should bring us lower taxes
After SPÖ leader Andreas Babler presented 24 ideas from his council of experts, the party presented its concept for financing them on Sunday. According to the paper, in order to maintain and expand the achievements of the welfare state, the SPÖ is focusing on more employment, for example through additional kindergarten places, savings, e.g. in government PR and taxes on the rich such as a millionaires' tax. The bottom line is that 98 percent of citizens should pay less tax as a result.
According to the calculations, measures such as free kindergarten and all-day school places, investments in health and care, 4,000 additional police officers, a fund to transform the economy, a job guarantee for all long-term unemployed and basic child protection would cost EUR 7 to 8 billion per year.
More employment should relieve the budget
At the same time, various measures from the SPÖ concept would save EUR 3.5 billion, while economic effects from more employment should bring in EUR 1.5 billion. "Fair taxes" are also to serve as counter-financing. In all of this, the SPÖ is committed to adhering to the Maastricht deficit rules, the document emphasizes.
In order to ease the burden on the budget, the SPÖ is specifically focusing on employment, as there is hardly anything more expensive for the budget than unemployment. According to the paper, the creation of direct employment (for example in childcare) or indirect employment (for example through more full-time work), including economic effects, would generate at least EUR 1.5 billion for the state coffers "based on a very conservative self-financing estimate".
According to the SPÖ paper, achieving the climate targets could save EUR 1.2 billion in unnecessary expenditure on fines and the purchase of certificates, while the party also sees potential savings of EUR 1 billion by curbing inflation by 0.5 percent through price interventions. A further EUR 500 million is to be saved by cutting ministerial staff and cabinets as well as excessive subsidies to companies, while EUR 800 million could be raised by combating fraud and closing tax loopholes, according to the SPÖ.
Tax cuts for 98 percent of citizens
This would leave a net cost of 2 billion for the plans, which, according to the SPÖ calculation, would be offset by 7 to 8 billion in revenue from "fair taxes" such as a millionaires' tax, a reallocation tax and the reversal of the corporate tax cut. This in turn would provide scope of 5 billion for a reduction in taxes on labor and a temporary abolition of VAT on basic foodstuffs.
Austrians deserve to have their lives improved with taxes and not wasted "on gifts worth millions for corporations and pompous government PR". "This is how we will ensure that 98 percent of Austrians will pay less tax",
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