Budget leaks: average incomes to benefit most from spending power boost

Underpayment is a common problem. Photo: Depositphotos.com
Photo: Depositphotos.com

Spending power will go up across the board next year but middle incomes will benefit the most, RTL Nieuws said on Friday. The broadcaster based its claim on leaked documents ahead of next Tuesday’s budget, which will include the formal spending power forecasts.

People on middle incomes – around €38,000 a year – will enjoy a 2% increase in spending power but low income households will also benefit, RTL said. The increase will be paid for by a delay in implementing corporate tax cuts and a drop in the tax benefit for freelancers.

Earlier this week the national statistics office CBS said average spending power rose just 0.3% last year and is set to rise by 1.2% in 2019.

In June, prime minister Mark Rutte warned he might abandon corporate tax cuts if companies don’t put up wages.

‘The only thing which is going up is the salaries of senior staff, not people covered by collective labour agreements (cao),’ Rutte said. ‘They are not going up enough, and I do not consider that to be acceptable.’

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