Column: who’s going to be the crisis to pay for it? | Download

The promises made by some parties to play a role, such as links to the public sector to continue to increase in size. They have shown their voters are already promised additional spending to take on the case of education, health and the environment. In addition, the question arises as to how these needs, which amount to about 10 billion of them, structurally, with an empty treasury to finance it.

According to the latest estimates of the Centraal Planbureau (CPB) in the netherlands, the new government in 2021 with a budget deficit of 4.7% and a public debt of over 60%, and an unemployment rate of approximately 650.000 people (in 2020 and around 450.0000). When the recession hit the Netherlands harder to strike, then the rate of unemployment at 10%, and increases the national debt would increase to more than 75% of the gdp is lower than in other EU countries)

The low economic growth rate

Apart from the temporary recession and will be for the election 2021-2025 poor structural and economic growth of between 1% and 1.5% per year. It is noteworthy that, in the Hague, the political is still not sure to be visible about the statistics that show what the effects are of such a low growth rate. Due to the expected increase in the cost of public care, state old age pensions and pensions to have this growth rate is more or less completely, to be published in these ‘unavoidable’ costs that are “automatically” lead to the left greater in the public sector. This means that the new government is hardly about the money for the additional spending power of citizens, but also for the improvement of the education system and the strengthening of our economy.

No cuts

On the whole, most of the political parties are of the opinion that it is in a recession, would be unwise to cut corners. With the downturn in the economy has been strengthened. On the left, right and centre, it is more or less on the same line, and his opponent, from bezuinigingsoperaties. With the ability to use the empty treasure box to fill with the extra income tax is left alone, and with the right and in the middle of it.

An Extra tax on the rich

The Dutch are all over the world to take the lead, with a high administrative burden on citizens, it is on the left in favor of of this press even further. Thus, a so-called rijkentaks, so that our economy will be weakened.

The rijkentax, according to the left, and two goals. In the first place, to get the money to finance their wish lists of up to, but also to get the income and the vermogensverschillen to reduce the size. The figures from the Dutch Central Bureau for Statistics (CBS) show that the income differences in the Netherlands is stable and relatively small. A global comparison shows that our country is among the countries with the lowest income inequality. With the wealth we are sitting around in the middle of the table.

On the left rijkentaks is thought to be one of two forms: a higher tax for the top a higher tax on big fortunes. In the latter case, mainly the elderly and the ondernemingshuishouden affected by it. The CBS figures show that this group has the greatest capabilities. By far the greater part of the assets from the older generation is out of the home on which the mortgage will (partially) is repaid in full.

In ondernemingshuishoudens, and in particular, to the ability, which plays an important role in corporate finance. In addition, the volatility of the assets of the group is strong in its economic development. A lot of businesses in the financial crisis of 2008-2009, the large capital losses suffered, and that is what we see now in the coronacrisis. The funds that are left, an extra charge is mainly for the older generation, and for entrepreneurs, that is, we need it for our jobs. Due in part to the fact that the revenue for the treasury, but only a couple of hundred million, we will question this idea.

Rijkentax in high-income

In several countries, with the rijkentaksen in the high-income poor experience. In Europe, it is the most well-known example is the French rijkentaks of up to 75% in 2013, due to the socialist president, François Hollande, was introduced. This tax was soon repealed. It will give rise to tax evasion in France, and submitted to the treasury, therefore, is very low and it was also due to the fact that investors in France were avoided.

In the Netherlands, has left a rijkentaks that have been suggested. On the account of them by the Central Planning bureau (CPB) in the netherlands found that the negative effects of this type of load, and the output of each balance is even negative.

The Extra taxes on multinational companies

In politics, The Hague, dominated by the idea that what must be avoided is that of the general population prior to the crisis pay the bill. We also find that firms with a reasonable contribution can be expected. On the left, had been circulating ideas for an additional income tax on multi-national corporations. That may be due to an increase in our corporate income tax rate, but also by limiting tax deductions and measures to be taken against the legal escape from tax. An increase in the rate of sticking of disadvantages such as a deterioration of our bedijfsvestigingsklimaat that is already under great pressure.

Recently, it has set up a committee of tax experts, at the request of the house for a thorough report, to be released to multinational companies be more effective on the subject. This could be an annual additional amount to deliver as much as 600 million euros. A larger amount is possible when the preferential tax treatment of corporate loans will be reduced. We have already argued that it is far and away the best solution to this is creating a European tax is.

In addition, consideration may be given to the proposed reduction of the corporate income tax rate to be deleted, and this is limited to small and medium sized enterprises.

Approach of a crisis

With the economic crisis, and we need to fix it and pay for it with a comprehensive tool that allows for the earning power of our economy will be strengthened, and its growth is promoted. The German approach to digitisation, new technologies, innovation, R&D, and climate central, and can be used as an example.

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