The ChristenUnie wants to thoroughly reform the tax system and advocates, among other things, the scrapping of allowances. Instead of benefits, households should receive a tax credit that depends on the number of people. This is stated in the program of the coalition party for the elected members of the House of Representatives, reports it Nederlands Dagblad. The discount must also depend on income.
The current benefits system is now too complex, says candidate Member of Parliament Pieter Grinwis. The party therefore proposes that parents pay a personal contribution of about 25 cents per hour for childcare, and that the care allowance should be automatically deducted from the care premium. This should prevent people from forgetting to apply for benefits to which they are actually entitled.
Furthermore, the party ultimately wants to get rid of the mortgage interest deduction and the minimum wage must be increased by 10 percent. Companies do have to hand in: this is how the party wants to limit the tax benefits for multinationals.
Especially single-earners are moving forward
The ChristenUnie has had the plans calculated by the Central Planning Bureau (CPB) and says that under such a new system, the Dutch will gain about 4 percent. For single-earners it even amounts to a 12 percent increase in purchasing power. In this way, the party wants to support families with one breadwinner, so that there is time and space left for care for children or parents in need of help. The CPB does say that the party’s plans are so far-reaching that it is ‘uncertain’ what the economic consequences will be.
The party is not the only one who wants to change the allowance system. Coalition party D66 also wants to get rid of all allowances. The parties cite the problems surrounding the childcare allowance at the tax authorities as the reason for this. According to GroenLinks, the childcare allowance system must also come to an end.
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