But why is this slump falling? Government revenue all the stronger than the forecast minus in economic output? There the researchers expect for Austria this year “only” a minus of up to 7 percent.
The large government sector has a stabilizing effect on gross domestic product (GDP), says Schellmann. However, this does not contribute to taxation, so declines in income are more serious than those in the economy.
The tax consultant has applied his model calculation directly to the expected sales and income of the individual tax-paying areas – such as the large retailers, for which, instead of 77 billion euros, only 60 billion euros in sales are forecast this year.
And he doesn’t just have the finance minister’s budget, he has that General government as a whole. Austria had revenues of EUR 169.5 billion in the previous year, of which around EUR 110 billion Taxes and 60 billion euros Social contributions.
“Around 20 percent of this will be eliminated,” says Schellmann. His calculation shows how much more serious the Corona crisis 2020 will be than the financial crisis year 2009.
At that time they left Government revenue only by 3.5 billion euros. The reason: the shops and businesses had not closed, the consumption continued unchanged. With VAT and the Social contributions there were no failures either.
Now, however, it hits almost all sources of income. And it takes revenge, that Austria Budget so much of Taxes is dependent on income from work.