Tax time! Austria is currently undergoing yet another attempt of reforming its (high) income tax. The two parties in the ruling coalition have provided two different suggestions on adjusting tax rates, and as usual much nitpicking ensues about financing, distributional justice and so on.
When my friend +Anton Pirker
published this table, I was first of all reminded of the sad state of the Austrian media landscape. Despite the fact that I read both of the supposedly "quality" newspapers in the country, this was clearly the best presentation of the two proposals that I had seen until then, and I got it from an amateur on the Internet.
The second thing that they struck me was that both of these proposals weren't very ambitious overall. This was visible in the third and fourth graph, but I decided to make it a little more explicit by comparing pre/post reform situations with Swiss tax rates. The results are pretty stark. In the salary range for professionals, living in Switzerland saves you 20-25% of gross income in income tax alone, i.e. you pay 3x the income tax in Austria. That is not considering the fact that the table ends at an annual 90k EUR, which is almost exactly the median household income in Switzerland, but above the 90th percentile in Austria.
In conclusion, Austria is not a country where you'll accumulate much wealth from labor income, and it's not going to change much with either of these proposed reforms. Wealth and inheritance are tax free though, so you might have a tolerable time if you or your family already have something to pass around.