adNov 12, 2026, 19:24

Parliament approves left-wing tax proposal: lower labor taxes to be funded by the wealthy

The Dutch House of Representatives passed a tax amendment to lower taxes on labor by increasing levies on wealthy individuals and investment returns. The proposal, supported by a coalition of parties, complicates the future of the cabinet's broader tax plan due to opposition from the VVD.

The Dutch House of Representatives has approved a tax amendment proposed by party leaders Jesse Klaver and Laurens Dassen. With 79 votes in favor, the legislation aims to reduce taxes on labor by increasing the tax burden on wealthy individuals. Key changes include implementing a higher tax rate in box 3 for investment returns exceeding 60,000 euros per year, while the standard rate for box 3 will be slightly decreased to 35.5 percent. Additionally, the proposal targets tax avoidance by ending a specific construction regarding paper donations.

The passage of this amendment introduces uncertainty for the broader government tax plan. VVD faction leader Ruben Brekelmans had previously indicated that his party would withdraw support for the overall budget if this specific amendment were accepted. With support from a diverse coalition including CDA, D66, SP, and other smaller parties, the government now faces potential friction in securing the final budget. The measure involves approximately 1 billion euros, with 400 million euros still requiring coverage through the limitation of existing fiscal benefits.

Politics Economy Netherlands

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

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