The Netherlands is a progressive country, so we have a progressive income tax system. The more you earn, the higher the tax percentage. The tax steps go from 34,15%, 41,45%, 42% to 52%. As you can see the Dutch system for calculating the income tax is so sophisticated and honest that the tax percentages are given with two digits behind the decimal point.
But as we have a dynamic rightwing government that realizes that the Dutch ‘sophisticated’ way of taxation is a bit of a drag on the economy, they decided to do something about it. Popular Dutch newspaper De Telegraaf today reported that the Dutch income taxes for 2007 are lowered.
The 34,15% tariff is lowered to a wooping 33,65% and the 41,45% tariff to 41,40%. A quick calculation learns that this would lower tax pressure with about 10 euro a person a month. That is, if that person earns more than 2600 euro a month, otherwise his tax break will be less.
One can only wonder how many bureaucrats have worked on this ‘much needed’ tax break.