Coalition parties agree on tackling top salaries

21st November 2007, Comments 0 comments

21 November 2007, THE HAGUE – The coalition parties Christian Democrat CDA, Labour PvdA and ChristenUnie seem to agree on how to tackle top salaries. A cabinet proposal to limit the deduction for pension premiums for high incomes from 2009 has been rejected.

21 November 2007

THE HAGUE – The coalition parties Christian Democrat CDA, Labour PvdA and ChristenUnie seem to agree on how to tackle top salaries. A cabinet proposal to limit the deduction for pension premiums for high incomes from 2009 has been rejected.

Instead there will be heavier taxes on generous severance packages and bonuses in the business sector. This answers a request from the CDA, which could not accept the pension measure. The Christian democrats say the pension measure would damage the business climate and affect too many people. The CDA feels that attacking excessive remuneration is a better solution.

Parliament will discuss the cabinet's tax plans all day on Wednesday.

Until now, the cabinet, supported by the factions of PvdA and ChristenUnie, saw the alternative presented by the CDA only as a possible addition to its list of proposals. Finance Minister Wouter Bos made it clear last week that he liked the idea of an employers' tax for companies that pay high salaries, though he identified a few disadvantages. He promised to examine the proposal further.

PvdA and ChristenUnie also seem willing to agree to another CDA amendment to one of the cabinet's proposals: the higher tax on houses worth more than EUR 1 million. The increase to the homeowner's property tax will be introduced over a number of years.

The cabinet proposals for pensions and the homeowner's property tax are planned for 2009, but were announced in the tax plan for next year. Parliament must vote on the proposals on Wednesday and Thursday. The cabinet will then be asked to come with amended plans for tackling top salaries.

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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