Cabinet wants to help poor workers cut taxes

Cabinet wants to help poor workers cut taxes

Cabinet is considering introducing a tax credit to workers next year. It is a measure to accommodate the growing group of Dutch who do not have enough to make ends meet. This is what the sources say to NOS.

The tax credit is meant to give low- and middle-income people more room, because they have to pay less tax. Specifically, it is about adjusting the working person’s tax credit for the lowest income, leading to an increase in salary. The Cabinet will make a decision on this in August. People won’t notice until next year.

The measure also implies that part-time workers will work longer hours, as a contribution to solving the problem of staff shortages. Much needed thing in these times of shortage in the job market. Previous research shows that 30 percent of the working poor would like to work more hours if the working person’s tax credit was increased.

Increase the minimum wage further

The government is also considering raising the minimum wage a further step forward. This will also be decided in August. This increases the purchasing power of low-income earners.

Government parties had already decided to raise the minimum wage, but even with this increase, it is still subject to European directive. The new minimum hourly wage is €12.11, according to Brussels advice, another €2 should be added.

Susanna, the taxi driver, was happy with the potential pay increase, and said earlier this week that she “jumped for joy, of course”:

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