Too Much Tax Money in the Pension System?

Op-ed by WIFO Economist Christine Mayrhuber in the Daily Newspaper "Der Standard"
WIFO economist Christine Mayrhuber explains in her op-ed in the daily newspaper "Der Standard" of 11 July 2019 that the Austrian pension system has again been assigned a socio-political objective. A debate on reducing the general tax money that goes currently into the pension system must also take this aspect into account.

If, in future, the amount of the federal contribution is (again) used as an argument for a pension reform, several areas need to be considered simultaneously: Which socio-political objectives have been assigned to the pension system? Do changes in the labour market cause more or less need for social balance or redistribution? Which distribution functions exist between the different employment groups, are they desired? According to Mayrhuber, the debate about a future-proof, socially and financially sustainable pension system in Austria should also consider these deeper questions and not only concentrate on proposals to curb federal funds in pension insurance.

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