Kingdom of the Netherlands—Netherlands: Selected Issues
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Summary:
This paper aims to contribute to the discussion by sketching ways in which the taxation equity-efficiency frontier could be shifted outward in the Netherlands. In a nutshell, we argue that significant efficiency gains could be achieved by shifting the tax burden away from labor, and toward consumption and capital—especially housing. The detrimental impact of the tax-benefit system on labor supply—in particular by mothers—and the insufficient and distortionary use of the value-added tax (VAT) as a revenue-collection mechanism is also highlighted in the paper. This paper also reviews the main features of the Dutch tax system and sketches the contours of a hypothetical tax reform.
Series:
Country Report No. 2016/046
Subject:
Expenditure Labor National accounts Pension spending Pensions Personal income Self-employment Wages
English
Publication Date:
February 11, 2016
ISBN/ISSN:
9781475557695/1934-7685
Stock No:
1NLDEA2016002
Pages:
45
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