Austria's Haberzettl Seeks Introduction Of Wealth Tax

by Ulrika Lomas, Tax-News.com, Brussels

26 January 2010

Wilhelm Haberzettl, Chairman of the Austrian group of Social Democratic Trade Unionists (FSG), has emphasized the need to impose a wealth tax on Austria’s super-rich, in a bid to create a more equitable distribution of wealth, and in order to generate much-needed additional revenue to consolidate the country’s budget.

Haberzettl has highlighted the fact that nearly all other industrialized countries of the world levy higher taxes on wealth than Austria. He nevertheless stressed the fact that it is not a question of increasing the burden on low- and middle-income earners, but merely of taxing the country’s richest.

According to the FSG, wealth-related taxes account for a mere 1.4% of all tax revenue in Austria. Most of the tax burden in Austria is in the form of payroll and value-added tax, the FSG maintains.

The FSG has also welcomed calls by the Social Democratic Party of Austria (SPÖ) to introduce a bank tax in Austria. Haberzettl is adamant that banks should pay a “solidarity contribution” designed to help overcome the financial crisis. The tax privileges of private trusts must be removed and a discussion initiated about introducing a fairer tax on wealth, he concluded.

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