Thread: Netherlands finance study shows: Single income household gets taxed up to 85% more then both partners working

Well. If this isn't proof that something's rotten I don't know what is. Source article (in Dutch, source is a conservative protestant-christian news outlet): https://www.rd.nl/vandaag/politiek/e...%A9r-1.1440252

Translating the relevant points:
Calculations by Teunissen (the financial analyst referenced in the article) show that a two income household with kids, in which both partners have a combined income of 40.000 euro (2 times 20.000) will pay 1.864 euros in taxes, while a single income household of 40.000 euro will end up paying 10.381 euro. Almost 6 times the amount. The tax pressure for single person households is also enormous when compared to a two person dual income household. A single person without kids with a 40.000 euro income will pay 11.136 euros in taxes next year, more then 9000 euros more then a dual income family with the same combined earnings.

The difference in tax pressure is caused because the government does not tax family income as one combined source, but individually. Two income households profit doubly from various tax benefits, which the previous government has both made strongly income dependent (favoring lower incomes) and significantly increased during the last years. Single income families are also hit by the reduction of several benefits for supporting a non-earning spouse or dependant.
In addition, two income families with children under 12 further receive a tax deduction to the lowest earner of up to 3000 euros, which in many cases means this income is not taxed at all for incomes of up to 20.000 euro.

I might just need to consider emigration at this point - or scale my work time back so much that I fall in the absolute lowest tax bracket. Because this is insane. I'm literally subsidizing broken families like this. The only silver lining I guess is that under this system both partners are practically required to each hold a job, so if a divorce happens, alimoney (still refuse to spell that any other way) is not a big issue since both partners have income. As if the system is designed with failure in mind. But it punishes both traditional families AND those who refuse or are unable to pair up.

But yea, that was an unexpected red pill today. And it left a sour taste.

Man, I live there too, but I hardly pay any taxes since I'm on welfare. Sucks to be working class these days!

Do you receive tax relief by contributing to a retirement fund which lowers your tax bracket? Have you looked at donating to charities as an option? But yes working less to be in a lower tax bracket while having more free time for yourself is a far more logical conclusion.

Retirement funds/pension is state mandated in the Netherlands, it's basically part of the taxation. So guess whose pensions I'm subsidizing too.
Donating to charities? I'd rather burn money then hand it to the pity industry. They offer no solutions, just counterproductive stopgaps. And cultural charities in the Netherlands tend to be "multicultural", promoting the forced diversity mindset which I despise as well. So that's a no go.

I don't know how schools are in the Netherlands, but in the states it's just another blue pill pyramid scheme. Schools here are largely funded by annual property tax's, so unless you live in a cave, your paying. What's that you say? No one in your family's been to school for fifty years, yet your still paying like you had ten kids? Well ain't that too bad? Yeah, I've heard the "it takes a whole village theory", and how It "benefits me as well." Right. Do you think the blue pill world would put up with funding something for fifty years that didn't do a damn thing for them? You know they wouldn't.


Children's charity's also seem to think I ought to be glad to help too, and they all try to make you feel guilty if you don't.

Originally Posted by AeternusDoleo

Retirement funds/pension is state mandated in the Netherlands, it's basically part of the taxation. So guess whose pensions I'm subsidizing too.
Donating to charities? I'd rather burn money then hand it to the pity industry. They offer no solutions, just counterproductive stopgaps. And cultural charities in the Netherlands tend to be "multicultural", promoting the forced diversity mindset which I despise as well. So that's a no go.

Well it seems that your best option is probably to think about going to a lower tax bracket.

a two income household with kids, in which both partners have a combined income of 40.000 euro (2 times 20.000) will pay 1.864 euros in taxes, while a single income household of 40.000 euro will end up paying 10.381 euro

Well, that's true in any progressively taxed system. Take any two people each on an income of X, and they will pay less tax than a single person on an income of 2X. Yes, it does penalise the traditional SAHM. To fix, if a wife is a SAHM then half the husbands income should be treated as her income for tax purposes. To really fix, do this only if she has kids under the age of 16 at home. And to really, really fix: only if it's her first marriage.