Taxing the Middle

Austria has clinched a tax repatriation deal with Switzerland [see Austria Briefs, p. 4, TVR May 2012].

Honesty Is Not Rewarded, 18 April

by Josef Urschitz

Once again, honest tax payers… are the idiots. Any high earner would choose to be taxed at 15–38% – the rates for a one-off taxation of Swiss accounts in Austria’s new deal; here, their salaries would be taxed between 42% and nearly 50%, plus social insurance contributions…

Governments act efficiently, and fetch themselves money where they can access it most easily. The most tax compliant population groups (which studies show to be the middle earners who, as employees, don’t have much opportunity to "hide" their income) – are taxed the highest.