<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In Austria, bracket creep has so far only been partially returned to the taxpayer within periodic tax reforms. As of 2022, the federal government has decided to fully compensate for the bracket creep, albeit not automatically for every taxpayer, but within the framework of compensation differentiated by income tax brackets with a discretionary component accounting for around one-third of the annual bracket creep burden. A full adjustment along the lines of the Swiss model would have been desirable. If lower income tax brackets continue to be adjusted stronger like upper income tax brackets in upcoming years, full-time employment will be further discouraged.</p>
</abstract>

In Austria, bracket creep has so far only been partially returned to the taxpayer within periodic tax reforms. As of 2022, the federal government has decided to fully compensate for the bracket creep, albeit not automatically for every taxpayer, but within the framework of compensation differentiated by income tax brackets with a discretionary component accounting for around one-third of the annual bracket creep burden. A full adjustment along the lines of the Swiss model would have been desirable. If lower income tax brackets continue to be adjusted stronger like upper income tax brackets in upcoming years, full-time employment will be further discouraged.

The Cold Progression in Austria

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Die kalte Progression in Österreich

In Austria, bracket creep has so far only been partially returned to the taxpayer within periodic tax reforms. As of 2022, the federal government has decided...

The Cold Progression in Austria

Publié en ligne: 28 juil. 2023

Pages: 479 - 483

DOI: https://doi.org/10.2478/wd-2023-0137

© 2023 Dénes Kucsera et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.