AMSTERDAM: The proposals to raise taxes for companies and high earners which the left-wing parties have included in their election programmes are out of step with current trends and should be ditched, say economists Rick van der Ploeg and Willem Vermeend.
The election date is drawing near and campaigns have kicked off. Important issues include health care, immigration, integration, security, jobs and pensions. The parties on the left of the spectrum are making efforts to enter higher taxes on the election agenda as well. SP, GroenLinks and Labour are all in favour of raising taxes for companies and high earners.
They feel such a move would be fairer and promote equality. They also need the money to finance the items on their wish lists, such as more spending power for people on lower incomes, lower health care costs and measures to protect the environment. These lists constitute a political choice which we won’t go into now. We are limiting ourselves to the effects of the tax proposals and their supposed benefits to the national coffers.
