Advice: everyone should pay 44pc tax

27th September 2005, Comments 0 comments

27 September 2005, AMSTERDAM — All Dutch people should pay the same tax rate and the mortgage rebate should be abolished, Parliament has been told.

27 September 2005

AMSTERDAM — All Dutch people should pay the same tax rate and the mortgage rebate should be abolished, Parliament has been told.

Everyone should be in the 44 percent tax bracket. Retired people on the AOW national pension should also pay tax and mortgage tax relief should be abolished because the "interest rate is so low", the economic think tank Raad van Economische Adviseurs (REA) said on Tuesday.

The council was responding to the 2006 Budget unveiled earlier this month. Its far-reaching proposals were essential, the council said, because the current tax system did not give people enough incentive to work.

Implementation of a uniform tariff would encourage higher participation in the labour market and promote economic growth, the group said. The think tank was established by parliament earlier this year.

The Liberal party (VVD), which is part of the centre-right coalition government, said it was in favour of expanding the tax system. But the opposition Labour Party (PvdA) said it would only consider the proposal to limit mortgage tax relief.

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

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