The tax and premium revenues have declined in relation to the increase in the number of freelancers. As a consequence of this, the state social insurance contributions are not generating the expected revenue, which leads to less budgetary funding for the education, public transport, and car departments. This is according to the state funded study of the Interdepartementale Beleidsonderzoek (Interdepartmental Policy Study, IBO).
This appears that a freelancers' equal net pay is forty percent cheaper when compared to a salaried employee: a big reason why employers take on the self-employed. The big difference, in addition to tax benefits, comes from the amount of social security contributions paid by an employer for one employee.
The PvdA says to the Volkskrant that there should be a higher established tax credit for salaried employees. This would lead to a considerable decrease in the number of self-employed persons, as it gives a higher incentive to work as a salaried employee.
“It is very nice that the PvdA is thinking in terms of tax cuts for employees. If the PvdA comes with this type of proposal, we will always look at it carefully and not just shoot them down immediately. We must also look closely at its foundations,” Volkspartij voor Vrijheid en Democratie (People's Party for Freedom and Democracy, VVD) representative Anne Mulder Said.
Source: The Volkskrant