The next scenario maintains the same high energy prices for imported energy with a special energy import tax. The annual yield of this tax at current low international energy prices is about 30 billion Austrian schillings per year. We use these revenues from the energy tax to reduce income-based taxes which are paid by employers, e.g. social security contributions. Thus the basic idea of this tax shift scenario is a shift in the tax base from income to resource use. This shift results in a change in relative factor prices which makes labour cheaper in relation to capital. The result of this scenario is disappointing at least in the framework of the model used since the factor substitution effects expected are almost negligible.
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