'Secret' draft budget revealed: different Box 3 plan, baby bonus, and cheaper flowers after all

A draft budget proposal by Finance Minister Eelco Heinen has been made public after being blocked by coalition parties D66 and CDA. The document revealed that Heinen sought an agreement with opposition parties JA21 and SGP by offering concessions including a shift toward a capital gains tax by 2028, a 500-euro baby bonus, and maintaining lower VAT rates for the floriculture sector. The proposed capital gains shift would have cost approximately 11 billion euros, potentially rising to 13 billion, according to ministry officials. To offset these costs, Heinen explored increasing taxes on wealthy individuals and entrepreneurs.

While the coalition rejected the draft, some measures remain under consideration as the cabinet seeks a new approach to tax wealth. Notably, higher-income earners will still face the top tax bracket of 49.5 percent starting at an income of 78,426 euros, a measure expected to generate 1.2 billion euros. The opposition remains critical of how these financial adjustments will impact those without significant assets, ensuring that the debate over fiscal policy and tax distribution continues within the government.