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BackRecently, several important reports on the status quo of tax revenue and assets have been published in the Member States of the European Union. The outcome of these reports shows that Austria, in particular with regard to taxation of labour is among the leading group of countries in Europe, that there are large increases in wealth and that the number of millionaires in the Alpine Republic is on the up. These developments once again call for a fairer taxation policy!
Report “Taxation trends in the European Union “
The Annual Report of Eurostat and the EU Commission (June 2014) shows the varied tax revenue of the Member States and examines the taxation trends in respect of labour, consumption and capital. According to this Report, the largest source of tax revenue in the EU27 countries was taxation of labour (51 %), followed by taxation of consumption at about 29 % and taxation of capital at 21 %. At 39.4 % in 2012, the average EU tax ratio (the sum of taxes and compulsory actual social contributions in percent of the gross domestic product) saw a slight upturn; in the previous year the value had been about 38.8 %. With regard to the entire tax burden (the sum of taxes and social contributions including employee contributions minus social transfers), at 43.1 % Austria is among the leading group of countries. At 43.3 %, this value was only higher in 2003. If one compares Austria with other EU countries, it becomes clear that the taxation of capital is more in the lower mid-range (Austria 15.2 %, EU average 20.8 %, Luxemburg 27.5 %). In the period between 2002 and 2012, the taxation of consumption in Austria had fallen from 28.5 % to 27.6 %; it is thereby below EU average (28.5 %), which benefits consumers. With regard to the taxation of labour, at 57.4 % Austria ranks right at the top; the EU average is about 51 %. Only in Sweden (58.6 %), labour is taxed even higher than in Austria. These developments show that the demand by AK and ÖGB to reduce wage taxes as soon as possible is more than justified.
Report “Tax reforms in EU Member States”
Apart from that, the EU Commission published its Annual Report on “Tax reforms in EU Member States 2014 - Tax policy challenges for economic growth and fiscal sustainability” this week. It provides an overview of the most important tax reforms implemented by the EU Member States and shows the tax policy challenges, they are confronted with. This Report too shows that taxation of labour in the EU is high. Furthermore, the Report states that reducing this burden by shifting it to other sectors, could be far less damaging to growth and therefore, in the opinion of the EU Commission, would have a positive impact on growth and employment.
Global Wealth Report 2014
Recently, two amazing results came out of the newly published reports of two Swiss Private Banks. For example, the Bank Julius Baer comes to the conclusion in its recently presented “Wealth Report: Europe” that in 2013 wealth in Europe not only had exceeded its high pre-crisis level but at EUR 56 trillion had reached a new record high. According to Julius Baer, Germany and Austria are among the countries with the highest concentration of wealth. The rich have emerged from the crisis with their wealth still intact, becoming even richer, whilst Europe groans under record unemployment and rising poverty. Similar results could also be found in the “Global Wealth Report 2014” of Credit Suisse, which was published this week. At USD 263 trillion worldwide, the wealth of all private households has reached an all-time high. The past 12 months alone have seen growth of 8.3 %. There are currently 18 million millionaires worldwide, and the Study forecasts that their number could rise to more than 53 million by the year 2019. In respect of average wealth per adult, Switzerland at USD 581,000 remains the global frontrunner, followed by Australia and Norway.
Austria too greatly benefits of rising wealth growth: there are currently 233,000 millionaires; according to estimates their number will rise to 700,000 by 2019. Against the background that since the year 2000 the wealth of Austrians has risen by about 172 %, but the income of employees in the same period by only 35.7 %, a debate on fairer distribution in society as a whole is urgently needed.
AK and ÖGB event in Brussels: What does the EU do for fairer taxes?
The Brussels Offices of AK and ÖGB will host a panel discussion in Brussels as their contribution to the current political debate on the growing amount of income and the concentration of wealth in the hands of a small elite. Tax shifting and tax dumping in the EU will be the key issues of the high calibre AK/ÖGB event, among other with the participation of ÖGB President Erich Foglar, Ambassador of Austria to the OECD Marlies Stubits-Weidinger and Heinz Zourek, Director General, DG Taxation and Customs Union, European Commission.
Further information:
Report Taxation trends in the European Union
Report Tax reforms in EU Member States
Study „Global Wealth Report 2014“
Study „Wealth Report: Europe“
The Annual Report of Eurostat and the EU Commission (June 2014) shows the varied tax revenue of the Member States and examines the taxation trends in respect of labour, consumption and capital. According to this Report, the largest source of tax revenue in the EU27 countries was taxation of labour (51 %), followed by taxation of consumption at about 29 % and taxation of capital at 21 %. At 39.4 % in 2012, the average EU tax ratio (the sum of taxes and compulsory actual social contributions in percent of the gross domestic product) saw a slight upturn; in the previous year the value had been about 38.8 %. With regard to the entire tax burden (the sum of taxes and social contributions including employee contributions minus social transfers), at 43.1 % Austria is among the leading group of countries. At 43.3 %, this value was only higher in 2003. If one compares Austria with other EU countries, it becomes clear that the taxation of capital is more in the lower mid-range (Austria 15.2 %, EU average 20.8 %, Luxemburg 27.5 %). In the period between 2002 and 2012, the taxation of consumption in Austria had fallen from 28.5 % to 27.6 %; it is thereby below EU average (28.5 %), which benefits consumers. With regard to the taxation of labour, at 57.4 % Austria ranks right at the top; the EU average is about 51 %. Only in Sweden (58.6 %), labour is taxed even higher than in Austria. These developments show that the demand by AK and ÖGB to reduce wage taxes as soon as possible is more than justified.
Report “Tax reforms in EU Member States”
Apart from that, the EU Commission published its Annual Report on “Tax reforms in EU Member States 2014 - Tax policy challenges for economic growth and fiscal sustainability” this week. It provides an overview of the most important tax reforms implemented by the EU Member States and shows the tax policy challenges, they are confronted with. This Report too shows that taxation of labour in the EU is high. Furthermore, the Report states that reducing this burden by shifting it to other sectors, could be far less damaging to growth and therefore, in the opinion of the EU Commission, would have a positive impact on growth and employment.
Global Wealth Report 2014
Recently, two amazing results came out of the newly published reports of two Swiss Private Banks. For example, the Bank Julius Baer comes to the conclusion in its recently presented “Wealth Report: Europe” that in 2013 wealth in Europe not only had exceeded its high pre-crisis level but at EUR 56 trillion had reached a new record high. According to Julius Baer, Germany and Austria are among the countries with the highest concentration of wealth. The rich have emerged from the crisis with their wealth still intact, becoming even richer, whilst Europe groans under record unemployment and rising poverty. Similar results could also be found in the “Global Wealth Report 2014” of Credit Suisse, which was published this week. At USD 263 trillion worldwide, the wealth of all private households has reached an all-time high. The past 12 months alone have seen growth of 8.3 %. There are currently 18 million millionaires worldwide, and the Study forecasts that their number could rise to more than 53 million by the year 2019. In respect of average wealth per adult, Switzerland at USD 581,000 remains the global frontrunner, followed by Australia and Norway.
Austria too greatly benefits of rising wealth growth: there are currently 233,000 millionaires; according to estimates their number will rise to 700,000 by 2019. Against the background that since the year 2000 the wealth of Austrians has risen by about 172 %, but the income of employees in the same period by only 35.7 %, a debate on fairer distribution in society as a whole is urgently needed.
AK and ÖGB event in Brussels: What does the EU do for fairer taxes?
The Brussels Offices of AK and ÖGB will host a panel discussion in Brussels as their contribution to the current political debate on the growing amount of income and the concentration of wealth in the hands of a small elite. Tax shifting and tax dumping in the EU will be the key issues of the high calibre AK/ÖGB event, among other with the participation of ÖGB President Erich Foglar, Ambassador of Austria to the OECD Marlies Stubits-Weidinger and Heinz Zourek, Director General, DG Taxation and Customs Union, European Commission.
Further information:
Report Taxation trends in the European Union
Report Tax reforms in EU Member States
Study „Global Wealth Report 2014“
Study „Wealth Report: Europe“