Austrian labour tax burden stifling economy: IMF

Austria should look to cut the tax burden on labour to boost the economy's growth potential, the International Monetary Fund has said. The IMF said in a new report that the country's tax wedge on labour – the difference between net and gross incomes – is one of the largest among members of the Organisation for Economic Cooperation and Development (OECD). This has contributed to relatively low employment among low-skilled workers and a higher than average uptake of part-time positions. The report warns that Austria's labour tax burden has continued to drift higher, as tax brackets are not adjusted each year in line with inflation. The IMF said Austria must look to restrain spending to fund labor tax cuts. It suggested that Austria review tax exemptions, increase real estate taxes, which were identified as particularly low, and hike environmental taxes, according to tax-news.com