The Netherlands expects a decrease in the purchasing power of the population in 2027 due to an increase in income tax
The purchasing power of the majority of households in the Netherlands in 2027 will fall if the implementation of the budget plans of the government, implying an increase in the purchasing power.
The purchasing power of the majority of households in the Netherlands will fall in 2027 if the government’s budget plans for higher taxes are implemented. It's from sb.by.
According to TASS, the portal NU.nl, citing calculations by the Central Planning Bureau of the Kingdom (CPB), reported that the purchasing power of households as a whole will decrease by 0.1%. One of the reasons will be the increase in income tax for working residents. The rate for income to €39.2 thousand per year will increase from 35.75% to 36.23%, and for income from €39.2 thousand to €78.4 thousand from 37.56% to 38.16%.
An additional tax burden on citizens with high incomes will affect the increase in wages that compensate for inflation. It is noted that this measure is intended to finance defense spending and was called the “freedom contribution”. For residents with low and middle incomes, the corresponding burden will be less.
For families with minor children, there is a review of benefits, compensation for childcare costs and tax benefits. Families with children who have only one parent and whose earnings are twice the nationally typical level will have a 1.7 percent reduction in purchasing power.
