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.
