Think about it

Think about it !!!

A few posts ago I spoke of what I consider inefficiencies in the administration of Austrian health services and the multitude of publicly operated meteorological services.

I said then and I will repeat now, that these are but some few areas where tax Euros could be saved.

Of course, Austria is not alone in this type of wasteful behaviour. I am certain that one could find this in every Democracy, including the rest of Europe and to a lesser degree in all of North America.

Since, after having lived in Canada for 53 years, I now live in Austria, the country of my birth, I will, now and then, glance at its inefficient behaviour. Why do I do this ? Because, in order to indulge into its largess with which it handles the Tax-Euro, it is forced to continually increase its revenue by any and all means.

One rarely, if ever, hears a Government official talking about „how to reduce expenditures“.

The talk always is about „how to obtain more income“.

So, we talk about „Increasing Realty Taxes, „Inheritance Tax“ and „Gift Tax“ and „Tax the Rich“ …

Oh, yes... particularly about the last of the three above. It is, if you listen to the Socialist Party of Austria, almost a crime to have been successful and to have invested for your future.

Dividends, paid to you by a successful company into which you have invested, is often referred to as „unearned income,“ because, it is claimed, you have not worked for these dividends and therefore they are „unearned“ and are viewed by some with disdain, as if this income had been earned somehow dishonestly.

Those who use this terminology simply reveal their political ideology and their total lack of understanding of the meaning of this accounting term, or of how the economy in a free society works, should work, must work.

Back to the wasteful disposal of Tax revenues:

Austria, a country of about 84,000 sq.km has, in fact, nine (9) different Provincial governments.

From the two smallest „Provinces“ Vorarlberg with 2,600 sq.km. and 376,000 inhabitants and Burgenland with 3,962 sq.km and 287,600 inhabitants to the two largest Provinces, being „Lower Austria“ with 19,186 sq.km and 1,629,000 inhabitants and Styria, with 16,400 sq.km and 1,217,000 inhabitants. Then there is Vienna, Capital City of the Country, also enjoying Provincial Status.

Each of the 9 Provinces ( Bundesländer ) of course has a fully functioning, democratically elected government, including opposition parties and all that this entails.

I therefore recommend an amalgamation of Vorarlberg, Tyrol, Salzburg, Carinthia and Upper Austria into, let's call it, Austria West, and Styria, Lower Austria and the Burgenland into „Austria East“, two units of about equal size in area and population.

Vienna must remain a separate political entity in order to govern the country as a whole in an impartial manner.

Voila, we now have two separate units, each with Provincial Status, instead of nine.

Two democratically elected Provincial Governments instead of nine, plus one Federal Government in Vienna. ( Bundesregierung )

In fact, Vienna could be governed by its mayor and would not need a Premier (Landeshauptmann).

The reduction in administrative cost, together with the increased efficiency would be well worth the hurt feelings, for instance of the Vorarlbergers who would find themselves in the same administrative and electoral compound with the Tyrolians. Their „hurt feelings“ would heal in a minute, when they realize that because of this amalgamation they now pay less in taxes.

I know that this will never happen, but it's fun to consider the implications.

An economic expert should figure out the degree of long range TAX REDUCTION this would make possible.

All the now redundant personnel could be sent home with full pay, until they reach retirement age, or find other employment.

No-one would suffer, everyone would gain.

I understand that culturally a Tyroler, will always remain a Tyroler, a person from Salzburg will for ever remain a „Salzburger“. 

I am not speaking of the elimination of cultural differences.

These are a part of what makes Austria such an interesting country.

I am speaking of the simplified administration of the country.

Two „Provincial Governments“ and their Premiers, and Ministers, their offices and their staff, instead of Nine.

Two of absolutely everything, instead of Nine

The potential savings would boggle the mind.

Compared to Austria, the approximately 10 times more populous country of Germany could have 90 Provinces ! It makes do with 16!

Or, put it another way: If Germany can govern 81 Million people within 16 Provinces, then Austria's population of 8.5 Million should be able to be governed within fewer than 2 Provinces. My example above provides for a generous 2 Provincial Governments.

Now, having examined the body of Government and its inherent wastefulness, let us look at  „Subsidies“ . 

In some ways, subsidies are necessary because, in certain cases, they enliven an activity which is beneficial to the country, and which otherwise would wither on the vine. These cases, however, are extremely rare and therefore subsidies should only be extended with great caution. 

Reading a list of them, as they exist now, could make an average taxpayer break out in a cold sweat of anger.

If you would like to see the never ending list, just of Farm Subsidies, go to Google and enter:

AustriaFarmSubsidy.Org.

You will read a staggering list, page upon page, headed by „Rauch Fruchtsäfte GmbH“, a recipient of at least 20 Million Euros in three tranches. Can the leading fruit juice producer not survive in an open market, without dipping in the public cash box to the tune of 20 Millions ?

Is there something I do not understand ? Please explain it to me..

This „Farm Subsidies List“ shows at the very top the following head line:

295.5 Billion Euros (that's Billion with a „B“) paid to 23,110,639 recipients, including amounts paid in 2013

( the year 2014 is not yet accounted for )

Fundamental changes in the Government structure and a radical trimming of Subsidies alone could lower the burden on the long suffering tax payer.

I know full well, that this is never ever going to happen. 

If Austria cannot decide to amalgamate five weather services into one, it surely will not be able to do what I suggested herein.

It was fun thinking about it and imagining what might happen to the economy of Austria if every dollar saved would result in a tax reduction. This money would flow into new and expanded enterprises, providing uncountable new work places.

A lean, mean working machine...

Bertstravels

likes to dream.

P.S. Similar comments could be written  about most other countries.