Our taxation is unfair: The SP solutions

25 March 2022

Our taxation is unfair: The SP solutions

Foto: SP

Even the Netherlands Bureau for Economic Policy Analysis, usually a supporter of neo-liberal economics, is now convinced: There is great inequality in the Netherlands, as low earners pay a much higher proportion of their income in taxes than the highest earners. Our tax system, which currently works to the advantage of the richest, needs a drastic change.

According to a study by Statistics Netherlands (CBS) and the Netherlands Bureau for Economic Policy Analysis (CPB), middle and high income earners pay about 40 per cent of their incomes in taxes, and the very highest income earners pay half of that. Liberal parties are fond of proclaiming that the Netherlands is a country with little inequality, but this idea does not make sense at all. The Prime Minister once called our country 'deeply socialist', but the reality is that the tax system works to the advantage of the richest. Those living on low and middle incomes pay too much tax and those at the top pay far too little. The SP proposes solutions to reduce this inequality swiftly and significantly.

SP MP Mahir Alkaya: 'Income tax in itself has become increasingly unfair because under Rutte it has been reduced for high incomes and increased for low incomes. If you include excise, VAT and premiums for the state pensions, the poor pay more than the rich. That has to change fundamentally.'

The SP proposes a sharp cut in taxes for the lowest incomes and an increase in taxes for the highest incomes and wealthy people. Four other proposals to reduce inequality:

  1. A millionaire's tax. The rich keep getting richer, whether there is a crisis or not. The inequality is not only in income, but also in wealth. With a millionaire's tax, the rich pay their fair share to benefit from our country's prosperity.
  2. Make a start with profit-sharing. Make sure that in companies with 100 or more workers, collective workers receive at least 10 per cent of all shares in the company. They will participate in the profits and have more say in the matter.
  3. The minimum wage must be raised to 15 euros an hour. This will increase all wages. The state pension and all benefits must remain linked to the minimum wage, and pensions have to be indexed.
  4. End the heating tax. This can be implemented very quickly and will save many low and middle incomes much money on their energy bills. It can be paid for by a slight increase of the tax on top incomes above one and a half tons. In this way, we can start to reduce inequality. 

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