Brussels (The Brussels Morning Newspaper): Bart De Wever is plotting labor profitability reforms for Belgium by removing the traps in employment adjusting the levels of tax brackets in correspondence with real salaries and by increasing net wages through indexation. Belgium was under pressure to prepare a budget plan to the EU by September 20th.
After a week of break they’re now in Belgium working on creating the Federal Government again. Bart De Wever (N-VA) is preparing to propose methods to increase the benefits of working. De Wever met with the key political groups to talk about his strategy to raise workers salaries by altering labor laws, tax rules and pension plans. Some details of his thoughts have been shared with the media
How will Bart De Wever’s tax reforms impact Belgium’s employment rates?
De Wever wants to make it less tempting for Belgians to not work by removing employment traps. These traps cause people to lose money when they go back to work and lose their State benefits. Belgium’s employment council suggested cutting back on unlimited unemployment benefits because Belgium has low employment rates and a shortage of workers.
De Wever will tinker with the taxation in Belgium. He increased the income limit for the highest tax rate, reduced the tax rate for certain earners, and broadened the lowest tax bracket, making sure small employees earn more. De Wever would like to raise the amount that workers do not have to pay tax on translating into support for underpaid workers. This means that he would adjust wages in such a way that net wages are indexed rather than gross wages. De Wever wants to reform the taxation system and provide support to labor but Belgium doesn’t have enough money. The EU is demanding that Belgium makes massive savings. Belgium has to submit to the EU before September 20 a plan on how they would deal with their financing problems. An economic professor believes that Belgium needs to retrench at this moment in time and make some drastic changes for the future because it can no longer continue with such kinds of expenditures like it did before.
