IDEAS home Printed from
   My bibliography  Save this article

The Tax Reform 2004-05 – Measures and Macroeconomic Effects


  • Fritz Breuss


  • Serguei Kaniovski


  • Margit Schratzenstaller



The tax reform 2004-05 includes tax cuts within income taxation (€ –2.2 billion) and corporate taxation (€ –1.1 billion) as well as increases of several excise taxes (€ +232 million). It is realised in two steps: the first tax reform package, taking effect in 2004, was adopted by the Austrian Parliament in June 2003, and reduces the tax burden by almost € 0.5 billion. The measures of the second package, which are worth about € 2.5 billion, were adopted in May 2004, and will mostly be implemented in 2005. The total volume of the tax reform 2004-05 reaches about € 3 billion (1.2 percent of GDP) from 2007 on. The tax reform is an important element within the government's long-term strategy to bring the tax ratio down to 40 percent of GDP. According to the current Austrian Stability Programme, the tax reform will decrease the tax ratio from 43.2 percent in 2003 to 41.9 percent of GDP in 2007.

Suggested Citation

  • Fritz Breuss & Serguei Kaniovski & Margit Schratzenstaller, 2004. "The Tax Reform 2004-05 – Measures and Macroeconomic Effects," WIFO Monatsberichte (monthly reports), WIFO, vol. 77(8), pages 627-643, August.
  • Handle: RePEc:wfo:monber:y:2004:i:8:p:627-643

    Download full text from publisher

    File URL:
    File Function: Abstract
    Download Restriction: Payment required

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Josef Baumgartner & Serguei Kaniovski, 2015. "The Tax Reform 2015-16 – Macroeconomic Effects up to 2019," WIFO Bulletin, WIFO, vol. 20(22), pages 250-265, December.
    2. Margit Schratzenstaller & Andreas Wagener, 2009. "The Austrian income tax tariff, 1955–2006," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 309-330, August.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:monber:y:2004:i:8:p:627-643. 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). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.