According to Groen, Belgians who earn less than the average monthly wage of 4,100 euros gross are “being hit particularly hard today by taxes, inflation and rising prices of basic products.” “Today you already pay a tax rate of 40 percent from an annual income of 15,200 euros. That is unfair,” says Van Besien.
In concrete terms, the party wants, among other things, to strengthen the federal work bonus and to abolish the special social security contribution for those who earn less than 4,100 euros gross. According to Van Besien, this amounts to a bonus of about 600 euros net per year. The measure would result in a total tax reduction of 2 billion euros.
The Greens want to finance the tax reduction with a higher securities tax, Cayman tax (tax on assets of Belgians parked in accounts in tax havens) and diamond tax, as well as with stricter tax rules for parent and subsidiary companies. The party believes that the measures will encourage more people to work and is counting on payback effects.
Before the summer, the federal government failed to agree on the tax reform of Minister of Finance Vincent Van Peteghem (CD&V). The Greens now want to introduce the tax reduction, but through parliamentary channels. “Every party agrees: labor is taxed too heavily in Belgium,” says Van Besien. “Our proposal cuts taxes for the lowest and average wages and gets the money where it is, from the largest wealth. We are convinced that we can find a majority in parliament,” the MP concludes.