The personal income tax (inkomstenbelasting) rate is at 52% sales tax ( omzetbelasting) varies from 17.50 to 21% depending on the class of goods. Corporate tax (Vernnootschapsbelasting) which is at 25% right now.
Here the list of rates as of 2017 according to the Dutch Gov.
Netherlands Taxes Last Previous Highest Lowest Unit
Corporate Tax Rate....................... ... 25.00 2
Personal Income Tax Rate............ ... 52.00 ( with those whose income is above 70.000)
Personal Income Tax Rates............ ...
Income..............................With Soc Sec..............without
- €0 to €19,882........... 33%...........................1.85%
- €19,822 to €33,589 ..... 41% ..... ......................10.45%
- €33,589 to €57,585...... 42%............................42%
- €57,585 ........................ 52%.............................. 52%
Sales Tax Rate ...................................21.00 17.50 percent
Social Security Rate.......................... 46.84
Social Security Rate For Companies 18.69
Social Security Rate For Employees 28.15
You have to realise that Holland has as little as 16 million inhabitents, yet has one of the highest tax rates in the world. I believe its currently fourth in the list. And whilste we do have safeguards regarding criminal intent. There are cases of theft, fraud and basic robbery in the political system. We just rather not talk about it while pointing the finger at everyone else.
The reasoning for the reduction in (inkomstenbelasting) and general corporate (Vernnootschapsbelasting) rates was.
- A population growth
- Stimulation of the work ******* and its potential release of purchasing power within the populus. Thus creating a tax base previously stagnated due to the higher tax band.
- By lowering the rates it created a larger monetary income from (strangly enough) the same sized populus at that time. By reducing the rates it freed up companies to a. invest more. b. expand. c. Take on more personnel. d. Increased the spending power of the consumer base thus generating a larger tax pool through sales and income taxes and thus Corporte taxes
- An advancement of the Dutch economy due to the influx of new consumer purchasing power and an increase in the prosperity of the Dutch nation as a whole by allowing a more favourable atmosphere for foreign investment
The main points to a successful econmy here are driven by market forces both localy and globaly. One only has to see the last financial crisis and crash to realise that the global monetary variations within each spheres ( read leading currencies) radius of influence has a knock on effect how effective reducing tax rate for consumers and corporate business is to the generation of taxes for a given government.
If a government marginalises its consumer base with a higher than sustainable tax rates,then any market fluctuation ie. IBM, Ford Shell, Apple or (lets say any of the top 500 Fort'e listed companies) influence on markets can create the ripple effect of negating the governments tax policy by reducing the consumer markets effectiveness, through both uncertainty in consumer markets and by reducing the consumer willingness to invest should they be put at a monetary disadvantage by spending what they think they might have. Over what they actually do have.
So, the economy actualy has an influence and impact on what can be provided by the government. A countries economy is reliant on being able to influence the spending power of the consumer and corporate wealth generation which in turn generates the taxable incomes that pay for government spending.
Hope this answers some of your question.