Christian Democrat suggestions that management redundancy pay-outs be subject to an extra tax would not effectively curb top people’s pay but would hit the investment climate, says finance minister Wouter Bos.

Bos made the comments during a pause in the parliamentary debate on the government’s finances on Tuesday evening. He will give his formal reaction to the CDA plans during the second day of debate on Wednesday.
The CDA wants all pension top-ups, extra bonuses and options deals for departing board level staff to be taxed at 20%. The cabinet plans instead to limit tax breaks on pension premiums for incomes of over €185,000 and to increase the extra tax on wealthy home owners.
But such proposals will hit all those with higher incomes, not just the excessive bonuses paid to some company bosses, MP Frans de Nerée said.
Bos said he was pleased the CDA were prepared to tackle top people’s pay packages. However, ‘it is much easier to dodge tax on bonuses than a tax on expensive houses,’ he said.