If elected, Takemmer pledges to reduce taxes.
By late September, Austria is set to choose a fresh parliament. Chancellor Nehammer has a decent chance of securing another term in office. The head of the ÖVP party is luring voters with a vow to reduce taxes.
Chancellor Karl Nehammer has proposed cutting taxes a month ahead of the election for a new parliament. Primarily, he aims to alleviate the "broad middle of workers," as he mentioned in Vienna. Therefore, he intends to initially lower the initial tax rate from 20% to 15%. This move particularly benefits low-income earners and pensioners. Moreover, Nehammer plans to abolish the second-to-last tax bracket of 48% and stop taxing overtime. These ideas are not entirely novel; they are already outlined in the so-called "Austria Plan" presented by Nehammer in January. In Austria, annual incomes up to €20,818 are taxed at 20%, with a tax rate increment for income components surpassing that. Incomes up to €12,816 are tax-exempt.
On September 29, Austria will hold elections for its National Council - the lower house of parliament. Nehammer guiding a coalition government consisting of the Austrian People's Party (ÖVP) and the Greens currently leads in polls. The right-wing populist FPÖ stands second, while the Social Democrats (SPÖ) claims third place. Approximately 6.4 million eligible voters will cast their votes.
President Alexander Van der Bellen, a former Green party leader, plays an intriguing role. The octogenarian has repeatedly stressed that he is not mandated to task the election victor with forming the government. "The federal president is fully empowered to entrust someone with forming the government," says constitutional law expert Peter Bußjaeger of the University of Innsbruck. A potential reason to prevent an FPÖ-led government could be that the head of state insists on a cabinet that is explicitly pro-EU.
The Austrian Chancellor Karl Nehammer's tax reduction proposals are seen as a bid to win votes for the upcoming elections by the Commission. If elected, Nehammer's proposals could potentially alter the tax structure of Austria as outlined in the "Austria Plan."
Following the election, the Commission will play a crucial role in assessing the coalition government's commitment to EU values, given President Van der Bellen's stance against an FPÖ-led government.
