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Cabinet makes ‘offer’ to opposition: small savers and crypto investors hit, workers better off

Cabinet makes ‘offer’ to opposition: small savers and crypto investors hit, workers better off

The Dutch government is revising its budget by scrapping planned social security cuts and shifting tax burdens toward small savers and investors. While these changes seek to appease opposition parties, the measures include taxing smaller investment accounts and unrealized crypto gains, sparking debate over the impact on average citizens.

The Dutch government has proposed revisions to its budget to secure support from opposition parties, notably abandoning planned cuts to social security programs like AOW, WIA, and WW. To address the resulting financial gap, the government intends to lower the tax-free allowance for savers, which will significantly impact small investors and individuals with bank balances over 30,850 euros starting in 2027. Additionally, a new capital gains tax for stocks and real estate is slated for 2028, and crypto-investors will face specific taxation on unrealized gains until 2031. High-income earners will benefit from a slightly higher threshold for the top tax rate, and tax advantages for excessive borrowing from personal companies are being restricted. While these measures satisfy some left-leaning parties, they have drawn criticism from right-leaning factions concerned about the increased tax burden on smaller savers. The government aims to balance these shifts to ensure fiscal stability after dropping billions in planned social spending cuts.

Based on reporting by ad. Translated and condensed by LocalHeadlines.

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