Economic disparities between households are widening, and the tax authorities sometimes contribute to this, according to a study published on Wednesday by the Central Planning Bureau (CPB). The agency warned that “if this trend continues, it could put equal opportunities under pressure”.
The CPB found that the highest earners pay relatively less tax than people on lower incomes. This is largely because they can place income and assets in a private limited company (BV). As a result, part of their tax liability can be deferred for a long period.
According to the CPB, inequality between households is growing in several areas. The richest 1 per cent are receiving increasingly higher incomes. At the same time, the wealth gap between homeowners and renters is widening, as housing shortages have driven up property values.
“In theory, the concentration of wealth at the top can be curbed through inheritance and gift taxes,” the CPB said. “However, due to generous exemptions, this currently happens only to a limited extent.”
@anp | NEWS BRAINPORT
