Like many other countries, Austria suffers from a "Cash Deficiency"....
In other words: The Government spends more than it takes in.
The simple solution: Spend a little less... sell some of the assets, particularly those which lose money by the fist full, mostly due to inefficient operations...
BUT: there is a better solution: Start a campaigne with the slogan: "Tax the Rich."
Establish a "temporary" Tax for those earning more than 200,000 Euros per annum.
What a genial stroke of good P.R.
In days gone by we could always look to the Socialist Parties to talk about "equal distribution by increasing the taxes payable by "the Rich". Now even the Conservative Party of Austria has adopted this slogan.
Since, as Stats Austria tells us, only about 3% of earners have an income in excess of 80,000 Euros p.a., those earning 200,000 must be an insignificantly small number. The political party which shouts: "Tax the Rich", can therefore count with some certainty to please over 97% of voters. What a hit!
Unfortunately I have no exact number of the amount of additional taxes the Government would raise but, considering the very small number of taxpayers in this income bracket, and, also considering that this additional tax would apply only to the amount earned 'over and above' the 200,000 limit, I believe it is fair to say that this additional income would scarcely put a scratch into Austria's financial problems.
Consider this: The annual Interest on Austria's Debtburden amounts to 7.8 Billion Euros. Together with Pension payments they swallow more than 30% of all Federal Expenditures.
And, so as not to panic those high income earners, the word "temporary" has been inserted in front of the word "Tax"... What a crock: Remember that the USA, for instance, introduced personal Income Tax as a "temporary measure" to finance World War 1. That war was over in 1918, but personal income taxes are still an everyday burden on every American Citizen. So much for the words "temporary tax". Once a Government has tasted from the chalice of Income Tax, it will never let go of it. It's like blood to a vampire.
And after considering all of this, please note that Austria is, per capita, among the richer Nations of the European Union.
This measure will not change by one iota the Debt shouldered by Austria.
But what a wonderful Election Gimmick it is.
Hey, quick, pay me back the buck you owe me.
Bertstravels.
2 comments:
Everything that ever comes out of a politicians mouth is an election gimmick. The federal liberals will kill the GST, the provincial liberals will not raise taxes and the municipal conservatives will not kill services (just trim the fat is all). And that is just the BS from the current crowd over here.
A politician visited a canadian Indian reservation: "As soon as I come back to Ottawa, he intoned, I will insist that the federal payments to you will be increaswed>
The First Nation members shouted enthusiastically: "Hoya..hoya. hoya
and furthermore, said the politico, we will build a new hospital..."hoya hoya hoya' shouted the Indians.
and I will insist that we build a new school... the shouting of "hoya hoya, hoya seemed to know no end...
later on the politico took a walk with the Chief of the Tribe. He saw some cows and bulls on a meadow and asked if he could go out to inspect these animals more closely.
"Surely", said the Chief..."just watch out that you don't step into any Hoya....
Aren't we all just a little cynical?
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