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Cabinet plans will hit more households harder than forecast

Wednesday 07 November 2012

Telegraaf%20website.png Disaster: the Telegraaf makes its feelings about the new government's policies clear

Nearly six in 10 people will have less money to spend each month because of the new cabinet’s policies, according to calculations sent to parliament by social affairs minister Lodewijk Asscher.

Some 14% of households will have between 5% and 10% less to spend while 3%, or 220,000 households, will see their disposable income cut by more than 10%.

High-earning single income households will be particularly hard hit. The traditional family with father earning €66,000 a year (double the average income), will lose 6.25% of their spending power over four years.

By contrast, single parent families on a minimum income will have some 7% more to spend, the figures show. Low income households will all benefit from the changes.

Cumulative effect

‘The increase in value-added tax, income-related health insurance premiums and making parents pay for school books – these all have a cumulative effect,’ RTL news correspondent Frits Wester said.

In the briefing Asscher stresses that the figures are an estimate and do not take into account inflation, wage rises and other macro-economic developments.

‘We are going to look at how we can limit the cases that stand out,’ Asscher said.

Large group

Halbe Zijlstra, leader of the VVD parliamentary party, told Radio 1 on Tuesday no income group will lose more than 4% of their spending power through the new government's policies.

Broadcaster RTL estimated last week some people could lose up to 30%.

Zijlstra did say that if policies lead to major reductions in spending power the cabinet could make a new agreement but only if 'the loss in spending power is more than 10% and for a large group'.

According to the Telegraaf, some households will be much harder hit than indicated in the new figures because these have been averaged out. But it is unclear what the new cabinet means by ‘large groups’, the paper says.

MPs decided on Wednesday afternoon to hold their traditional first debate with ministers next Tuesday, after the national family spending institute Nibud has completed its own calculations on the likely effect of government policy.

Have your fears been soothed by the new minister's briefing? Have your say using the comment box below.

© DutchNews.nl

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Readers' comments (6)

As far as I know there is a crisis in Europe. We expect all sorts of things from Greece. People are actually living in poverty there. And here we moan and complain about some high earning people losing some spending power.
And it is very obvious Telegraaf has an agenda. Typical right wing media can't stand it that a leftish party like PvdA is in power. We are bombarded every day with dramatic over the top headlines by Telegraaf. Get used to it.

By pepe | November 7, 2012 2:10 PM

No. When would my fears ever be soothed by a politician?

By Me | November 7, 2012 2:25 PM

No! my fears have not been soothed by the briefing. I would like to know in hard facts just what it is going to mean TO ME so I know what I will have and what I will not have.

By dee | November 7, 2012 2:52 PM

You mentioned the middle class & the poor but.. what about the filthy rich? - yeah I know, dumb question :P

It would seem now that the main objective of the Sampson & Delilah party is to soon legally confiscate more of many people's income.. and get away with it, totally uninspiring, (Again!)

By The visitor | November 7, 2012 4:38 PM

It took RTL to threaten court action against the government before the figures were disclosed. 'No-one would get more than a 4% reduction in spending' has now been revised to 'more than a 10% reduction' in the blink of an eye, and then modified to unlimited (unless the affected persons are a 'large' group) before the blinked eye could reopen. Thank you RTL for forcing disclosure from a bunch of liars.

By jaycee | November 7, 2012 7:13 PM

This plan is clearly redistributing from the middle income to the lower income group. The very rich - earning a few 100 thousand a year will be even better off, because lowering the top income tax rate will fully compensate their higher health care costs, as well as the lowering of the mortgage deduction.

By Andrew | November 8, 2012 9:30 AM

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