Support for purchasing power for poorest

The government is planning to channel money from the richest to the poorest in its 2012 budget, the Telegraaf reports on Friday quoting insiders.


The governing right-wing liberal VVD and Christian Democrats and their alliance partner PVV are concerned about the effect of cuts on the purchasing power of the lowest paid.
Among the measures being discussed are moving money for child benefit, where everyone receives the same, to the child budget which is calculated on family income. The subsidy for the cost of child care will also be made dependent on income, says the Telegraaf.
There are also plans to lower the tax limit on earnings so that more people will fall into the 52% tax bracket, says the paper.
The budget will be presented on September 20.

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