Tax reforms mean more spending power for most families 2016

Tax reforms mean more spending power for most families 2016

24th December 2015, Comments 0 comments

Dual income families with children will benefit most from tax reforms to be implemented in 2016, since the senate voted in favour of them.

In total, they will have 2.5% more to spend next year, thanks in part to higher child benefits, Dik van Leeuwerden of salary processing firm ADP told broadcaster Nos on Wednesday. Working couples without children will have a 1.9% rise in disposable income while singles will have 0.9% more to spend.

The increase in spending power, which will give the average family €800 more a year in disposable income, is the biggest since 2006, social affairs minister Lodewijk Asscher said in a briefing to parliament.

However, poorer pensioners and people living on social security benefits will only see a marginal increase in spending power. And pensioners with corporate pensions will actually be worse off because their company payments are unlikely to have been index-linked.

Ministers delayed sending the new legislation to the senate for approval several times, and this means the changes have not yet been incorporated into wage calculation programmes, Van Leeuwerden said.

It will take until April for all the changes to the various allowances and tax breaks to be processed.



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