The tax burden remains high compared to OECD countries

In the OECD's annual comparison, Austria again had the third highest value for taxes and contributions. According to the “Wage Taxation” study published by the OECD, the “tax wedge” reached 47.2% in Austria in 2023 (average for single employees).

The wedge represents the difference between the employer's labor costs and the employee's remaining net earnings after taxes and fees. The average value across the 38 OECD countries was 34.8 percent.

Compared to the previous year, Austria's tax wedge rose slightly: in 2022 it was still at 46.9 percent.

Married people with one parent in the medium term

Austria falls significantly in the middle range for single-parent couples with two children: here the tax wedge is 32.8 percent (OECD average: 25.7 percent), which means the 11th highest tax burden within the OECD. and development for this group (2022: 13. place). For dual-income couples, the percentage was 40.6 percent.

The tax wedge for individuals or families with children is generally lower than for individuals without children, with many OECD countries offering tax benefits or cash benefits to families with children.

Once again NEOS called for “comprehensive tax reform” to ease the burden on labor – “with a significant reduction in non-wage labor costs and the complete abolition of cold progress.”

In addition, “tax incentives for full-time work” should be created — “with a full-time bonus and tax relief for overtime bonuses,” said Gerald Loacker, economics spokesman at NEOS. In contrast, “partial financing of any kind” should be abolished.

NEOS for tax reform and abolition of “part-time subsidies”

NEOS used the OECD figures as an opportunity to once again call for “comprehensive tax reform” to ease the burden on workers.

In addition, “tax incentives for full-time work” should be created – “with a full-time bonus and tax relief for overtime bonuses,” said Gerald Loacker, economic and social spokesman at NEOS. In return, NEOS wants to eliminate “part-time funding of any kind.”