Tax Plan still not safe, No Majority in Dutch Senate

By: Together Abroad 12-11-2015 1:13 PM
Categories: * Daily employment news, Business news,
The Dutch Senate has not gained a majority agreement for the tax plan for next year. The Opposition parties CDA, SGP, CU and SP have submitted a proposal to Secretary of State Eric Wiebes, that single earners must be given a higher tax benefit. The minister does not agree with this however, as he fears that the plans will cost too many jobs. Employment growth remains a constraint, Wiebe said earlier during the debate.

The government wants to ensure 5 billion euro is used to implement tax cuts, while also being accompanied by 35 thousand extra jobs for next year. In the search for support Wiebe is willing to accept less job satisfaction.

In the plans of the opposition who can not count on support from Wiebes, the gap between one- and two-earner families is reduced. Also, there is extra money to the increase in child benefit.

The CDA in particular want the difference in tax burden among families with young children with one breadwinner and families where both parents work to be reduced.

Within the Senate

On Thursday a final decision was made as to whether the opposition will supply a credible modification to the proposal that Wiebes can live with. It was voted on by the House of Representatives over the entire tax plan.

With the support of the three Christian parties, Wiebes needed to get his tax plan through the Senate. The coalition in the Senate only has 21 of the 75 seats. The Lower House has debated on the tax plan since Wednesday.

If the tax plan as it now is not changed, the chances are that it will be voted down by the Senate. This probability seems high because the author of the proposal Elbert Dijkgraaf was not talking about the rejection of Wiebes. "I have no intension of changing anything more at all," said Dijkgraaf.

The alternative
The Christian parties during the debate had been looking for an alternative cover for their plan to accommodate families with one breadwinner financially.

Wiebe is not against narrowing the gap between one- and two-income households, but the latter should not be the ones to suffer.

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