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‘High incomes in particular benefit from lower energy and fuel taxes’

Marieke Blom, chief economist at ING, previously told the NOS that the government mainly reaches the middle and high incomes with the reduction of excise duties and VAT. And the multi-billion dollar package means that the national debt will continue to rise, the bill of which will lie with the future generation.

Blom favors a different approach. “For example, increase the tax credit for the lowest incomes, and reduce it extra quickly so that higher incomes will pay for this. People feel this in their wallets, but then the cabinet does what it says it wants. Economists agree on this: you should not lay the costs on the future.”

According to Frans Rooijers, director and researcher at CE Delft, who checked Investico’s calculations, compensating everyone is unwise. “And don’t compensate on the basis of energy consumption itself. Because just look at the excise duties: high incomes in particular refuel a lot and benefit from the reduction. Lower incomes are therefore compensated relatively less.”

Lower the temperature

Researcher Rooijers also believes that something else is needed. “Ultimately, we also need to use energy more economically and smarter. So turn off the lights, do not completely illuminate homes and lower the temperature.”

“It is true that lowering VAT and excise duties also affects people with higher incomes, but these measures do relatively more for people with lower incomes,” the Ministry of Social Affairs and Employment said in a response. “The honest story is that the whole of the Netherlands will notice something from the higher energy prices. The government cannot compensate for this for everyone.”

‘High incomes in particular benefit from lower energy and fuel taxes’
Source link ‘High incomes in particular benefit from lower energy and fuel taxes’

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