The re-introduction of a 60% income tax rate would be an ‘undesirable’ move, prime minister Jan Peter Balkenende reiterated in parliament on Thursday.

Nevertheless, all avenues are being considered in the ongoing hunt for measures to generate €35bn to reduce the budget deficit, the prime minister was reported as saying by news agency ANP. ‘There are no taboos,’ he said.
Labour leader and finance minister Wouter Bos has suggested bringing back the 60% top rate to generate more cash for the treasury. The 60% tax rate was cut to 52% in 2001.
The cabinet has set up 20 commissions to investigate all areas of government policy with a view to making cuts and raising more money for the treasury. They are due to report back by May 1.