European Lawmakers Approve Resolution on the Conditions in the Baltic Regions
👋 Hey there! Let's dive into the world of Austria's finance scene.
🏦 In 2023 and 2024, thanks to Magnus Brunner, the ÖVP's Finance Minister, Austria will say goodbye to the pesky "cold progression"—the sneaky way your taxes increase due to inflation, even if your actual income remains stable. This infamous tax burden was repeatedly lamented by the then-ÖVP Chancellor, Karl Nehammer.
💰 But, brace yourself, because in 2025, things are flipping. Under Markus Marterbauer from the SPÖ, there's a bit of a U-turn: the cold progression partially returns. In 2026, the state treasury's coffers will swell with a tidy sum, around €440 million, due to this change. Meanwhile, taxpayers this year are saving a colossal €2 billion thanks to the cold progression's abolition.
🗣️ On the popular news platform, Puls24, Andreas Hanger, the ÖVP's budget spokesman, made some waves with his statement. Shockingly, he admits that he was never a huge fan of the cold progression abolition! Why? Well, he argues that this measure took away valuable resources for tax reforms from the government. As for the emotional impact on taxpayers, Hanger points out that a return of between €30, €50, or €80 isn't exactly a life-changer.
👀 "I've never crossed paths with anyone who got excited about the cold progression being abolished," Hanger candidly admits. Given that the hoped-for tax relief never seemed to reach the general population, he considers the cold progression abolition a bit of a misstep.
🌏 It's worth noting that the environment sector is taking a hit from these budget cuts, with substantial decreases in subsidies, including a steep reduction in the Climate Fund. This is just one piece of the broader strategy to manage government spending and tackle economic challenges.
The policy-and-legislation of Austria's finance scene in 2023, under Magnus Brunner, aimed to abolish the cold progression, a tax increase method linked to inflation. In contrast, the politics of 2025, led by Markus Marterbauer, saw a partial return of the cold progression, which was met with general news discussions, such as Andreas Hanger's statement on Puls24 about the cold progression abolition.
