The President of the Austrian Federation of Trade Unions (ÖGB) has suggested that the income tax on low income employees should be significantly reduced. He suggested that the government should decrease the starting rate of income tax from the current 36.5 percent and make the income tax structure more progressive. This would have the effect of helping those on lower incomes. The government has already appointed a tax reform working group and the President called on the group to produce proposals before the end of 2014 so the changes could be implemented by the beginning of 2015. The Austrian Finance Minister has clarified that the government first needs to rebalance the finances, which will require until 2016. Only then would tax cuts be possible.
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