Effects of Wealth Taxes

  • real wealth taxes are not in fashion
    • decline in wealth taxes
  • not a problem on individual wealth, but on corporate wealth
    • company A is not profitable every year
    • might suffer huge losses in individual year
    • might have to close if there is no wealth (equity) to keep the company running
  • individuals rarely experience losses

Inheritance and Gift Tax

  • handing over wealth to the next generation
  • generational equity
    • just because your parents were rich you should not be able to have this privilege alone
    • again a rebalencing effort
  • Austria has no inheritance and gift giving tax (since ~2010)
    • due to strong inclination to family-owned businesses in central Europe

Real Estate Transfer Taxes

  • selling / buying a property, typically a low percentage, but still relevant
    • in Austria 3.5%
  • popular because it is extremely easy to enforce
    • in most countries you are not even registered as the owner if not paying the transfer tax
  • also hitting mostly the people which are able to buy a house
  • Owners vs Tenant Society