Tax plans also leaked: alcohol and flowers more expensive, medical expense deduction abolished, senior tax credit reduced

Leaked tax plans for the upcoming Prinsjesdag reveal that the Dutch cabinet intends to increase taxes on specific items including alcohol, flowers, and hot air balloon rides. While the government is implementing a purchasing power package to support citizens, average Dutch households are still expected to see a slight decline in their net financial situation. The reforms include a reduction in the tax credit for seniors and the future abolition of medical expense deductions by 2028, though chronic patients will be compensated. To help offset these measures, the government plans to increase the labor tax credit and slightly lower the tax rate for the first income bracket.

The cabinet faces a challenging political landscape as a minority coalition seeking support from opposition parties. Notable adjustments include delaying the increase of the healthcare deductible and canceling plans for an accelerated rise in the retirement age. Furthermore, funds have been allocated for infrastructure, public health initiatives such as shingles vaccinations, and assistance for those impacted by fuel costs. Debates surrounding wealth taxes remain ongoing, with a new proposal expected next year.