Macroeconomic Effects of the Year-2000 Tax Reform
The year-2000 tax reform – together with the package of family-related measures – will result in medium-term income gains for private households and enterprises of ATS 32.5 billion. ATS 17 billion are accounted for by wage and income tax reductions due to the reform of the income-tax rates, ATS 12 billion by transfer payments to families ("family package"), and ATS 3.5 billion by other measures taken to increase the attractiveness of Austria as an industrial location and to create employment. Relative to the gross domestic product, this tax reform is more comprehensive than the previous ones implemented in 1988 and 1994. The main emphasis of the reform is on easing the tax burden on private households. Consumer demand will increase by a cumulative 1.8 percent in real terms by 2005. With direct incentives for investors being extremely modest, investments are expected to grow by no more than 0.6 percent on a medium-term basis. Higher domestic demand, which also results in higher imports, will generate a cumulative growth of real GDP of 0.4 percent by 2005. Hence, the labour market can absorb another 9,300 employees. Price increases will be insignificant at 0.2 percent. The current-account and public deficits (net lending) will increase by 0.5 percent and 0.7 percent of GDP, respectively.
Volume (Year): 72 (1999)
Issue (Month): 7 (July)
|Contact details of provider:|| Postal: |
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
|Order Information:|| Postal: Austrian Institute of Economic Research Publikationsverkauf und Abonnentenbetreuung Arsenal, Objekt 20 A-1030 Vienna/Austria|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fritz Breuss & Fritz Schebeck, 1988. "Gesamtwirtschaftliche Effekte der Steuerreform 1988," WIFO Monatsberichte (monthly reports), WIFO, vol. 61(11), pages 623-633, November.
When requesting a correction, please mention this item's handle: RePEc:wfo:monber:y:1999:i:7:p:523-529. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)
If references are entirely missing, you can add them using this form.