Dutch cabinet races to find support for tax plan before deadline

On Saturday the Dutch cabinet met opposition parties at the Catshuis to try to win support for its tax plan, according to NOS. It does not yet have the votes it needs, and the deadline is close.

What happened

NOS reports that the cabinet is holding a further round of talks with the opposition about the belastingplan, the annual package of tax measures. Until now, the cabinet has not found enough support in parliament to get the plan through, even though the deadline is approaching fast.

The day began with an internal meeting. NOS names those present as Prime Minister Jetten, Deputy Prime Ministers Yesilgöz and Van den Brink, Finance Minister Heinen and Finance State Secretary Eerenberg. The ministers then met party leaders Bikker of the ChristenUnie and Struijs of 50Plus. According to NOS, these two parties could give the minority cabinet a majority in the Tweede Kamer, the House of Representatives, together with the Groep Markuszower. NOS adds that the cabinet has not yet officially negotiated with the Groep Markuszower.

The cabinet then held an online meeting with three more party leaders: Eerdmans of JA21, Vermeer of BBB and Stoffer of the SGP. NOS describes them as a small bloc of right-wing parties that asked not to travel to The Hague. On Friday, the three offered to back the tax plan on conditions that cover asylum, nitrogen, abortion and surrogacy. That offer went nowhere. NOS reports that the coalition parties D66 and CDA have serious problems with those conditions.

In the afternoon it was the turn of Pro and Volt, which are also negotiating as a pair. NOS says these parties could together give the cabinet a majority in both the Tweede Kamer and the Eerste Kamer, the Senate. The VVD, however, has little appetite for a deal that depends on the left, according to NOS.

Why it matters if you live in Netherlands

The tax plan affects anyone who earns, spends or pays tax in the Netherlands, and that includes most internationals who live and work here. NOS reports that most of its measures are meant to take effect on 1 January. If parliament does not approve the package in time, there is less certainty about what will apply from the start of the new year. The NOS report does not say which measures the plan contains. Workers, employers and households will have to wait for the final text before they can see what changes for their pay, costs or tax return.

The timing is unusual. According to NOS, the tax plan is normally settled in August. This year, on the last day of October, nothing has been agreed. That leaves parliament, payroll departments and tax advisers with much less time than usual to read and apply the final version.

The talks also show how a minority government works. The cabinet does not control a majority in the Tweede Kamer, so it has to borrow votes from opposition parties on major laws. Each possible partner has its own price. The right-wing bloc wants concessions on asylum, nitrogen, abortion and surrogacy. The route through Pro and Volt is unpopular with the VVD. The option built around the ChristenUnie, 50Plus and the Groep Markuszower would only reach a majority in the Tweede Kamer, according to NOS. The tax plan still has to pass the Eerste Kamer as well.

Internationals who follow Dutch politics, including EU citizens who can vote in municipal elections and those who have taken Dutch nationality, may find these talks useful as a guide. Conditions agreed in exchange for votes on the budget can affect policy well beyond tax. The right-wing bloc has already tied its support to asylum policy, a subject that matters to many people who moved here from abroad.

What to watch next

The first date to watch is Tuesday 3 November. NOS reports that the cabinet wants to send the tax plan to the Tweede Kamer by then at the latest. That gives it the weekend and Monday to secure enough support.

The Tweede Kamer is due to vote about a week after receiving the plan. If it passes, the plan goes to the Eerste Kamer. Most of the measures are supposed to start on 1 January, so the Senate stage will have to move quickly too.

The other question is which partners the cabinet chooses. A deal with Pro and Volt would deliver majorities in both chambers, but it runs into resistance from the VVD. A deal with the right-wing bloc would mean accepting conditions that D66 and CDA have so far found hard to swallow. A third route, through the ChristenUnie, 50Plus and the Groep Markuszower, would involve a group the cabinet has not formally negotiated with yet. Whichever option the cabinet picks will show how it plans to govern without its own majority for the rest of its term.

Source: NOS Politiek