Higher allowances and tax credits for low incomes: but will it also help?

Particular attention is paid to how lower incomes can be helped. Last year saw the largest decline in purchasing power in the last 40 years. There had been signals for some time that, unless If action were taken, a million people would live in poverty next year. And it wants that prevent an outgoing cabinet.

For example, allowances and the child budget must be increased for low and middle incomes. But the panel members appear to be divided on the proposal. Opponents find the benefits system too complicated. They also believe that working (more) should pay more.

‘Higher benefits make people lazy’

“Higher benefits make people lazy. Provide an incentive to work and reduce the tax on work,” says Dirk from Haarlemmermeer. Panel member Angelique from Alkmaar says. “I don’t think increasing allowances offers a structural solution to the current problems.” It is an argument used for more plans.

For example, there is a lot of support for compensating people who have difficulty paying their bills and also the tax credit for incomes up to 37,000 euros. But will it really help? The phrase ‘a drop in the ocean’ is often used. And so Bram from Uitgeest cynically states: “If you get a ten euro increase, everything becomes eleven euros more expensive. So you don’t gain anything from it.”

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Excise duties on tobacco and alcohol increased

Ultimately, these measures also have to be paid for. The outgoing cabinet wants to raise extra money, among other things, by increasing excise duties (taxes) on tobacco and alcohol. 59 percent think it’s fine if a pack of cigarettes becomes more expensive, 13 percent to a reasonable extent. The fact that alcohol will cost more is slightly less popular at 43 percent. Harmen from Amsterdam says: “Increasing excise duties on alcohol and tobacco may also help to stimulate healthy behavior.”

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Just over half think increasing taxes on higher incomes is a very good idea. Yet there is also a group here that does not want to know anything about it. “Improve purchasing power by increasing taxes? This actually reduces purchasing power,” says Rob from the municipality of Edam-Volendam.

John from Stede Broec adds: “There is a limit to how expensive you can make something. Too much tax ensures that things are no longer bought or brought from abroad.”

‘VAT reduced for healthy food’

Many panel members see more in encouraging healthy eating and reducing VAT on healthy foods, such as fruit and vegetables. Taxing large companies more heavily is also mentioned as a solution.