August 17, 2022

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The coalition is divided over future tax assets |  Policy

The coalition is divided over future tax assets | Policy

Within the alliance of VVD, CDA, D66 and ChristenUnie, divisions arose over how wealth should be taxed in the future.

The government wants to start working with … from 2025 The so-called capital gains tax, as an alternative to the failed savings tax. Under the new system, income from capital such as interest and dividends is subject to tax, as well as appreciation of shares or real estate. Work on such a system is also to some extent provided for in the coalition agreement.

However, VVD has stepped on the brakes and believes the government’s plan is “going very fast,” VVD MP Folkert Idsinga said in a discussion on the issue this morning. His party wants the Secretary of State to look again at another form, the capital gains tax. The difference is that “paper profit,” such as real estate that has increased in value, is not taxed. Idsinga fears that property that has increased in value on paper, but has not yet been sold, will still result in a huge tax bill for the owner. “I want the system to work for people and not get them into trouble.”

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Others see a delaying tactic in criticizing VVD. According to the Cabinet, it will already be important to introduce a wealth tax in 2025. New research into other variables has caused delays. Thus, less capital taxes are also levied in the meantime.

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Even MP D66 Romke de Jong questioned “the value of the VVD signature” under the agreements in the coalition agreement. He also says that taxing profits creates a “system of tax evasion”. ChristenUnie is also a critic of VVD.

Opposition parties note that the coalition is not on the same page. “The coalition is hitting each other in the head,” said Henk Nijbauer (PvdA).

The cabinet is also not very fond of the VVD variant. Foreign Minister Marnix van Rijk fears a “long-term tax deferral” with a dividend tax. Because then only taxes are paid, for example on shares, when they are sold.

Volkert Idesinga (VVD) in the House of Representatives. © Queen Lorig