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Kees van Dijkhuizen, chairman of the committee for the revision of the income tax, puts far-reaching plans on the table. This while the coalition talks are in full swing. Kees van Dijkhuizen is chief financial officer at NIBC bank. Kees van Dijkhuizen presents the plans as an interim report and that the final report will be presented next spring.
Proposal for flat tax
All taxpayers will then be subject to a flat tax rate of 37%. This will result in a flat tax and still maintain purchasing power?
The aim of the flat tax is to simplify the system with less money pumped around. A single rate does not seem feasible because it would distort income ratios too much.
With two rates, we can bring 12 million of the 13 million taxpayers under one rate of up to 37%. At the moment, only 6 million people are covered by this rate (current first bracket). With these plans, the first bracket will be 37% and will apply up to € 62,000. From an annual income above €62,000, the highest bracket applies with 49%. The committee indicates that it would be good to evaluate the tax system every 10 years. The committee also indicates that the flat tax should not lead to higher tax revenues. They indicate that workers in purchasing power will gain in purchasing power and that 140,000 jobs will be created by the plans. Nevertheless, they indicate that the minimums are not deteriorating.
Mortgage interest deduction:
The committee indicates that the mortgage interest deduction is one of the ways to pay for this. In doing so, the Committee does not opt for the mandatory repayment, but for a gradual reduction of the mortgage interest deduction for all mortgages, including existing mortgages. However, repayment is encouraged. The plan is to abolish the transfer tax and that the interest on the debt that remains in the event of a sale is deductible.
Pensioner:
The committee indicates that the over-65s are warmer than the current 50-year-olds. As a result, this population group can pay more tax.
VAT increase:
The committee also states that VAT should be increased further. The low rate should be increased from 6 to 8 percent and the higher rate from the current 21 percent to 23 percent.
Source: fd.nl
