Income Tax to Rise to 59 Percent for High Middle Incomes
THE HAGUE, 21/09/13 - The tax pressure for middle incomes will rise enormously in the coming years. The highest incomes on the other hand will continue to pay 52 percent, according to the Christian democrats (CDA).
The effective tax pressure will rise for virtually everyone due to the winding down of the general deduction (now 2001 euros a year) and the reduction in the discount for working taxpayers. In 2014, this means de facto that the tax pressure for incomes of up to 45,000, who currently pay 42 percent, will rise by two percentage points, and by another one point in 2015, to 45 percent.
For incomes of between 45,000 and 56,000 euros, the effective rate will actually go up from 42 percent to 49 percent. Between 56,000 and 93,000 euros, the tax pressure will rose from 52 to 59 percent, says CDA MP Pieter Omtzigt, who has analysed the government budget presented last Tuesday.
Between 93,000 and 110,000 euros, the rate will rise to 56 percent, but from 110,000 euros it will remain at 52 percent, Omtzigt calculates.
Finance State Secretary Frans Weekers has sworn that the crisis levy will no longer be levied on incomes from 2014. The cabinet has however showed itself to be untrustworthy on this point, as it promised last year that the levy would be a one-off measure just for 2012. Now it has been extended by one year, over incomes for 2013.
If the crisis levy disappears next year, it remains unclear whether the top earners will not be penalised in some other way. The levy in fact raises 0.5 billion euros a year. Labour (PvdA) has already shown itself to be in favour of a tax bracket with a rate of 60 percent for incomes above 180,000 euros.