Bos sticks to own plan for top salaries

12th November 2007, Comments 0 comments

12 November 2007, THE HAGUE – Finance Minister Wouter Bos is sticking to the cabinet's plans to tackle high salaries, despite pressure from coalition party Christian Democrat CDA.

12 November 2007

THE HAGUE – Finance Minister Wouter Bos is sticking to the cabinet's plans to tackle high salaries, despite pressure from coalition party Christian Democrat CDA.

The CDA wants to scrap the limitation on the deduction of pension premiums for annual incomes above EUR 185,000 and the higher tax on houses worth more than EUR 1 million.

In place of these measures, the CDA wants a tax on golden handshake packages and bonuses. The Christian democrats say these measures would be much more effective and less damaging to the business climate.

Bos reiterated on Monday during a meeting that he is prepared to look again at alternatives offered by the CDA, but that he does not see any reason as yet to change the cabinet's tax plans.

The tackling of top salaries comes back to a recommendation last December by the Frijns committee on salaries in the business sector, Bos said.

CDA MP Jules Kortenhorst stressed that the alternatives proposed by his party were intended to replace the cabinet's plans, "not simply be added to the list."

Coalition partners Labour PvdA and ChristenUnie support the cabinet's plans. Bos said he was open to further debate on top salaries, but that he "hasn't heard any good arguments yet" to change his plans.

Bos denied that the coalition parties were considering a deal on the relaxation of redundancy law and his plans for top salaries.

"I am in politics, not livestock trading," Bos said Monday after the meeting in Parliament. "There has been no talk of a deal. Both topics are complicated enough on their own."

The PvdA deputy prime minister was responding to reports that the CDA would reportedly be willing to drop plans from Social Affairs Minister Donner for relaxing redundancy legislation if the cabinet were willing to accept alternatives for a number of fiscal measures to tackle top incomes.

The PvdA says it will not discuss the plan from CDA minister Donner to make it easier for businesses to fire people. The CDA on the other hand has great difficulty with restricting the fiscal deduction of pension premiums for higher incomes and extra taxes for owners of expensive homes.

Bos said he was taking all the commotion in the media about problems in the coalition "with a grain of salt." "We all want to reach a solution together."

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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