[quote]orion wrote:
The Austrian corporate tax is around, well, no, it is exactly 25%.
The capital gains tax is also 25%.
If you compare that to the American system, it turns out that it costs about the same to get your money out of a company.
Buuuut:
If you have already payed 40%, the additional 15% will probably not disencourage you to take money out of your company.
If you have only payed 25% and face another 25% if you take it out you will be more likely to keep the money in the company and reinvest it.
It is, seen from one outcome, pretty much the same tax rate, but the incentives are so very different. [/quote]
So the Austrian corporate tax is flat?
orion
April 21, 2012, 11:09pm
42
[quote]Deercalf wrote:
[quote]orion wrote:
The Austrian corporate tax is around, well, no, it is exactly 25%.
The capital gains tax is also 25%.
If you compare that to the American system, it turns out that it costs about the same to get your money out of a company.
Buuuut:
If you have already payed 40%, the additional 15% will probably not disencourage you to take money out of your company.
If you have only payed 25% and face another 25% if you take it out you will be more likely to keep the money in the company and reinvest it.
It is, seen from one outcome, pretty much the same tax rate, but the incentives are so very different. [/quote]
So the Austrian corporate tax is flat? [/quote]
Yup.
Sorry if it has been mentioned (didn’t see it went I scanned), but what about a consumption tax and no income tax? I don’t see the pitfall there; you buy things, you pay tax.