The government is spending billions to ease the pain of rising prices. But in recent weeks, the warning that this support is limited has grown stronger. Party chairmen Jesse Klaver (GroenLinks) and Attje Kuiken (PvdA) are already feeling the storm and fear low and middle incomes in particular will be the victims. That’s why they are coming up with their own plan, they say in a conversation with NU.nl. “2024 is going to be a purchasing power canyon that we are heading straight into.”
In The Hague, minds are ripening for cuts in 2024, it seems. Minister Sigrid Kaag (Finance) announced via an “early warning” that the cabinet is facing a huge budget gap and that government cannot solve all problems.
The VVD party felt that the cabinet should also think about spending less money. Higher taxes to pay for support packages are in any case inadvisable for the largest governing party.
Yet this is an important part of the plan of the left opposition parties. The House will discuss with the cabinet on Wednesday the latest state of the government’s budget in the Autumn Memorandum.
What is your biggest fear?
Kuiken: “Paying the energy bill is a big challenge for people. Groceries are incredibly expensive. Sports clubs and cultural and health institutions are going through a very difficult time. You already have to think about how to deal with it.”
“We want to put the treasury in order, but not by cutting important structures like this one.”
What do you think the government is threatening to cut spending for?
Kuiken: “The media are already threatening measures. The VVD wants to cut spending. Then I already know what will happen soon. Then the wallets of people with low or middle incomes will soon be empty. Soon there will be a ruthless intervention where the man common suffers”.
What exactly are you afraid of?
Klaver: “The economy is getting worse and people are already calling for cuts.”
Punten uit begrotingsplan GroenLinks en PvdA:
- Minimumloon naar 14 euro per uur
- Investeren in woningisolatie
- Pot van 6,5 miljard euro voor koopkrachtreparatie
- Meer compensatie kinderopvang, sportclubs en cultuurinstellingen
- Hogere winstbelasting van 30 procent voor alle bedrijven
- Belasting op inkomen uit vermogen verhogen naar 49 procent
- Aanpakken van belastingontwijking
The VVD says the government should spend less money. Isn’t that the same as austerity?
Klaver: “Yes. If you spend less money, it means cuts. It just sounds a little friendlier. We also heard Minister Kaag saying that the government is spending too much money.”
“The cabinet knows that we are ready to arrange good things for the people, but we are also ready to say no. And I can tell you one thing already: we cannot talk about cuts. This is at the expense of ordinary people.”
“Of course we need sound public finances. There has been no intervention in large assets and companies in recent years. We now have a plan to raise the tax for the richest people in the Netherlands and for the largest companies.”
Kuik: “It’s also a political choice. We know where we want to put the bill: with people and companies who are better off. So tax goods higher and fight tax evasion”.
I have never heard or read anywhere that the low and middle income tax will be increased. In fact, Kaag has defined it right that the bill for the crisis is paid by large estates and companies that are now making money from it.
Klaver: “Recently Rutte told me about higher taxation of goods in a debate: ‘We have to map this out very well.’ It was well outlined! Not by GroenLinks or the PvdA, but by public officials and investigative committees.”
“In the group, we sometimes say, referring to Hendrik Marsman: ‘Thinking about resources, I see another official committee.’ We want the money you make from possessions to be taxed just as much as the money you make from work. That seems extremely fair to me.”
Kuiken: “Even Kaag says that the government cannot continue to spend money in an unbridled way. You are the finance minister and you must clarify. Meanwhile, we hear the largest party in the coalition say they want to cut spending”.
“If you’re not clear and you put off the problems, then I know what’s going to happen next. Low- and middle-income people will be screwed.”
Volg de politiek
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In which way? What will low- and middle-income people pay the most for?
Klaver: “Nothing concrete has been said yet, but minds are ripening for the cuts. We don’t want to go in that direction. That’s why we’re already engaging in the discussion.”
“Less government spending also means less purchasing power repair. As for the toilet, the price cap is for one year. Rising childcare costs will only be fixed before 2023. 2024 will be a canyon of purchasing power we’re heading straight for. Now can politicians please look forward??”
Should the current purchasing power package be extended to 2024?
Klaver: “This package is a big first aid kit of plasters. We want structural solutions, such as an even higher minimum wage of 14 euros and investments in insulation for a structurally lower energy bill.”
Kuiken: “The sooner you start doing it, the more targeted you can help people. Now even families who don’t need it get compensation.”
There is a budget gap of 7.5 billion euros and there are costly compensation measures. Surely it’s not surprising that a finance minister doesn’t want to keep paying him for the rest of his days?
Kuiken: “We also say: put the state treasury in order. But not at the expense of the common man. Do it structurally with higher taxes for the people who can afford it.”
