Brief Analysis on the Austrian Tax System and Expenditure Structures in International Comparison

First, this study provides an overview of the status quo of the Austrian tax system in an international comparison. A special focus is placed on the tax burden on labour and its long-term development from the perspective of employees and companies. On this basis the need for reform in the Austrian tax system is briefly identified to provide a starting point for deriving and evaluating reform options. Second, an international comparison of functional government expenditure structures is used to explore possible starting points for expenditure-based counter-financing. Identifying savings and restructuring potentials in public spending to regain financial room for manoeuvre is a key success factor for fiscal and tax policy. "Expenditure benchmarking" is carried out in particular in the light of considerations on a growth-friendly and sustainable orientation of public finances.