Savings totalling €20m over the next five years, a new top income tax tariff of 60% and a reduction in mortagage tax relief are at the heart of the Labour party´s manifesto for the June 9 general election.

The party wants to gradually reduce the tax break on mortgages until it only applies to 30% of the average house price. The current system is unfair because the rich are effectively subsidised by people on low and middle incomes, campaign leader Job Cohen said at the manifesto´s presentation.
Income tax
In addition, the party plans to introduce a new tax rate of 60% for earnings over €150,000. The current top tax rate is 52%, payable on earnings over €54,776.
The party also has no plans to change unemployment benefit but does want to make employers pay staff for the first six months of illness.
And it wants to call a halt to any further liberalisation of healthcare. Labour plans to invest in education and teachers´ salaries would be increased in line with private sector pay. But the student grant system would be phased out and replaced with loans.

Accords
During the presentation, Cohen called for two new national accords, one on social policy and one on democratic renewal.
A social accord is needed because of the number of problems facing the country, Cohen was quoted as saying in the Financieele Dagblad. There is no money for new policy initiatives, unemployment is mounting, companies find it hard to attract credit and the Dutch competitive position is being undermined, he said.
In terms of democratic renewal, the party backs an elected mayor for local authorities and a broad social debate on improving the electoral system. ´This can contribute to a recovery of faith in politics among ordinary citizens,´ he said.