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Netherlands

State budget 2012

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Good morning,

it seems that the crisis reaches everywhere and the austerity measures as well. After the party was in office he resigned because there was no agreement regarding the state budget, the remaining parties agreed on and approved the state budget that includes tax increases and other measures are also beneficial.

In the opinion of the Dutch, I said it was up to no good the government has gone down because it is only interested in the economy and save and the little people. The opposition party was forced to reach an understanding with three other smaller parties that are turned over to the well being of people and nature rather than just the economy. This meant that there was a balance. There was rather a tax increase but also canceled some form measures that would be very hard for the Dutch. Here is a summary of the actions agreed:

Key Tax Measures:

– VAT rises by 2 cento.O VAT paid on goods and services called luxury rises to from 19 to 21 percent.
– Pay scales are frozen.

Housing:

– Transfer tax remains to 2 percent.
– Rents can be increased by 1% for tenants with income between € 33,000 and € 43,000.
– People who have a new mortgage must be paid in more than 30 years.
– There is an additional investment in energy efficiency in homes.

Labor Market:

– In 2019, the retirement age moves to 66 years, and in 2024 to 67 years.
– The first six months of unemployment duration are paid by the employer.

Care issues:

– 1.6 billion cut (which has yet to be completed.)
– The rule that said we would have to pay € 9 for each prescription issued by physician was excluded.

Environment:

– Will be invested 200 million euros for nature.
– The dirty energy is heavily taxed (eg, production of coal power).
– VAT on solar panels down to 6 percent.

Cuts to government:

– The base salary is identical for all employees. This applies to all employees, except for people with care or benefits.
– The period when politicians get severance pay, is as long as the period in which they receive unemployment benefits, that is 6 months. Now a politician two years of receiving compensation if not exercised more functions.

Courts have been canceled and additional investments:

– Cuts in personal budget (PGB) and education that were designed by the previous party r were reversed.
– Additional savings for development have been canceled.
– 75 million extra for the quality of teachers and school leaders.
– Savings in legal fees was reversed.
– The cut in palliative care were reversed.
– Cuts to the contribution of mental health is reversed.
– Cuts in public transport 100 million will be reversed.

Other taxes:

– The tax on alcohol, soft drinks and tobacco products is increased. This produces more than 600 million euros.
– VAT on art and performance drops to 6 percent.
– The bank rate is doubled from 300 million to 600 million euros.

I think here are almost all measures. Missing either could not understand when I read the newspaper article.

Thanks and see you next time.

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