Minister of Social Affairs and Employment Hans Vijlbrief has signalled that raising taxes on wealth remains a possibility, especially if talks over major cuts to social security fail to produce a deal. With billions of euros in planned reductions on the table, the minister wants every option, including higher levies on assets, kept open.
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Discussions between the Cabinet, labor unions, and employer groups over the future of the country's social security system have hit repeated roadblocks. The proposed cuts touch some of the most sensitive parts of the welfare system, including the state pension scheme known as AOW, unemployment benefits under the WW program, and disability support through WIA. Among the ideas being floated are trimming how long people can claim unemployment benefits and overhauling disability benefit rules to bring costs down.
Pension policy and healthcare spending are also part of the broader cost-cutting conversation.
Minister Wants Wealth Tax Kept in Play
Speaking about the ongoing negotiations, Vijlbrief made clear he doesn't want to take a higher wealth tax off the table just yet. He explained that if the eventual agreement with unions and employers falls short of the savings targets laid out in the coalition's own budget appendix, the government will need another way to close the gap.
"A higher tax on wealth should not be taboo," he said plainly.
The minister also expressed a broader preference for raising new revenue over slashing existing government commitments. He argued that a Cabinet unwilling to act on either front, spending or revenue, risks accomplishing very little.
In his words, he'd rather lead a Cabinet willing to move on both sides of the equation than one that freezes up entirely.
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