The middle class is granted more purchasing power
The Planning Bureau’s calculations show a major flaw. The federal institution did not examine the entire election program, but a selection of thirty measures that the parties themselves were allowed to indicate. It is therefore impossible to draw very far-reaching conclusions. Yet the selection of measures – and their calculated cost price – clearly indicates where the parties want to spend money on as a priority, or where they want to save or tax it away. It is quite clear that every party wants to work on increasing purchasing power for the middle class. Except the PVDA. The extreme left party does not believe in the calculations and did not have purchasing power measures calculated.
Among the other parties, Vlaams Belang and Groen in particular are opening up the portfolio. They want a tax reduction of almost 17 and 15 billion euros respectively. Vooruit wants to reduce labor costs by approximately 13 billion euros. CD&V with 7 billion and Open VLD with 4 billion. N-VA is the most economical with a reduction in labor taxes of 1.2 billion. All in all, there is a consensus that work should pay more. But how that should be financed is another matter.
The budget is not a priority
The N-VA in particular has made a significant contribution to the calculation of the Planning Bureau. They have mainly put forward savings proposals. It is not surprising that they can present the largest clean-up operation in the budget. With the thirty measures taken by the Flemish nationalists, the deficit will end at 3.6 percent in 2029. Still somewhat towards the 3 percent that Europe prescribes.
The other Flemish national party, Vlaams Belang, has been least concerned about the budgetary rules. If their measures are implemented, the deficit will increase to 7.55 percent. Only the French-speaking liberals of the MR have forwarded a plan that leaves an even bigger hole. All other Flemish parties are also not thoroughly restructuring the budget. Although it is fair to say that they have mainly had tax cuts and expenditure passed on. Go all out with heavy cuts: N-VA is the sole ruler there for the time being.
A wealth tax is written in the stars
The left-wing parties have made a wealth tax a spearhead. “Tax the rich” and “get the money where it is”: these are slogans that crop up regularly. And the Planning Bureau has now examined in detail for the first time the proposals to introduce a ‘millionaire tax’. In any case, it could generate billions. Especially when the proposal of the French-speaking PS is implemented. They would already levy a wealth tax on assets of 1.25 million euros. Revenue is 7.6 billion euros.
The likelihood that one of the left parties will be needed to form a federal government is enormous. So is the chance that there will be some additional wealth tax
Sister party Vooruit was the only left-wing party that did not charge wealth taxes. They do want higher taxes on income from capital, such as the sale of shares. They want to reach 9.7 billion there, but that is not a real wealth tax. We will find that at the PVDA. According to the Planning Bureau, the communists’ millionaire tax does not yield 8 billion, as PVDA itself communicates, but approximately 3.9 billion. Groen’s ecologists also want to reap 2 billion for assets above 2.5 million.
The likelihood that one of the left parties will be needed to form a federal government is enormous. So is the chance that there will be some additional wealth tax.
The very weakest become the focus of serious discussions
All parties want families to improve. Vlaams Belang and Groen want to open up the portfolio the most, resulting in the largest increase in purchasing power. For an average family up to 252 or 248 euros per month. This is the least at N-VA and Open VLD, 29 and 20 euros respectively. But these statistics hide major differences. Green would mainly use the financial injection to support the very weakest. The Belgians with the 10 percent lowest income will receive an additional 777 euros per month. This would reduce the risk of poverty from 11 to 0 percent. Vooruit wants to provide additional support to the poorest, but focuses mainly on the middle class.
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PVDA Remove VAT on food and basic products. Restore free negotiations on collective wage increases. Removing the government’s ability to ban wage increases. Revised the wage blocking law of 1996. A minimum wage of 17 euros gross per hour. Blocking of energy prices and a ceiling on the price of essential foodstuffs such as flour, pasta, rice, semolina and potatoes. The excise duties on gas and electricity that the Vivaldi government added to the bill will be abolished. Increasing the minimum savings interest rate and lowering the interest rate on mortgages. Abolition of bank costs The automatic indexation of wages and replacement income is guaranteed and extended to employees who are not currently entitled to it GREEN The distinction between tax treatment of wages and extra-legal benefits, such as a salary car or meal vouchers, is gradually phased out for a higher net income for everyone Higher minimum wages . The minimum wage is always at least 60% of the median wage Reform the wage standard law, so that there can be free negotiation for fair wages Protect and improve the automatic index so that wages automatically increase when prices rise Make the difference between highest and lowest wages fairer, through social to ask partners to record the difference within a company VLAAMS BEANG Higher net wages due to the abolition of the crisis contribution, the increase of the tax-free amount to 13,560 euros and the reduction of the tax bracket from 40% to 30% An increase in the minimum wage by 5 % in Flanders OPEN VLD Expansion of flexi-jobs Also earn tax-free additional income from your own employer: legal ceiling revised, no taxes Abolition of 45% bracket in personal tax Expand and increase job bonus At least 500 euros difference between working and not working CD&V Whoever works, must net more due to tax reform: for a young working couple up to 7,500 euros extra per year The automatic indexation of wages is maintained to protect the purchasing power of citizens More purchasing power for the elderly through pension reform More respect for the saver: savers must receive a correct compensation receive from the bank for their savings We protect fringe benefits for employees such as meal vouchers and company cars FORWARD Banks and players in the energy and telecom market must always offer consumers the most advantageous contract. They must also be able to switch easily and free of charge, and price comparators must be pre-populated with consumer data. Housing must become more affordable, including through the abolition of registration fees under 250,000 euros for the first and only home. Working must pay more, through a tax reform that reduces labor costs. A full pension for everyone also helps purchasing power. Among other things, there must be a second pension pillar in all sectors. Affordable invoices are also a key to greater purchasing power. Just like fair taxes and a strong social security N-VA We choose to adjust the tax rates as a priority so that only the highest incomes are taxed at the highest rate. We will completely abolish outdated taxes, such as the special social security contribution. If multiple indexations take place per year, this must also be possible via a net index. In this way, the employee sees his purchasing power protected, and the employer does not increase his wage costs. The difference between working and not working must increase and amount to at least 500 euros net. The average shopping cart is too expensive compared to our neighboring countries. We make them cheaper by tackling the main causes. We reduce the main levies that only weigh on prices in this country. To strengthen the affordability of childcare for everyone who works and pays taxes, we make the invoice 100% tax deductible
This is the complete opposite picture with the N-VA. For them, the poorest 10 percent have to give up 122 euros per month in disposable income. After all, there are many unemployed and subsistence earners in that category. When launching its savings plan, the N-VA already announced that it would have to accept a number of index jumps. This results in a proposal to have those who are unemployed give up 894 euros and those who receive a living wage 76 euros. Only Open VLD comes close to those figures. Although CD&V and Vlaams Belang also want the unemployed to make do with less.
Allowing the weakest to contribute more or providing them with extra support: it is a debate that will certainly return in the campaign and in the formation of the government.