DISGRACE OR APRIL 1 ? : How to raise €35bn: make cuts, put up taxes

[The Lawspeaker]

How to raise €35bn: make cuts, put up taxes (http://www.dutchnews.nl/news/archives/2010/04/how_to_raise_35bn_cut_spending.php)

Thursday 01 April 2010


Increasing the own risk element in health insurance to €775, cutting the minimum wage by 10% and reducing basic welfare benefits - these are just some of the ways the government can get its spending under control, according to civil service recommendations made on Thursday.

The recommendations are the work of 20 government working parties, set up to indentify ways of boosting the government coffers by a structural €35bn. The Dutch budget deficit is set to reach 6% this year.
The working parties were set up last year, before the cabinet collapsed, to suggest spending cuts and tax increases which would effectively amount to a 20% reduction in ministerial budgets.

General election
The groups were asked to speed up their work, so the suggestions can be included in political party manifestos ahead of the June 9 general election.
The proposals range from bringing in extra charges for rush-hour travel, slashing civil service numbers and bringing in a €5 fee for visits to the family doctor.
Unions have already condemned some of the suggestions, saying they will increase divisions between rich and poor.

Drastic action
Prime minister Jan Peter Balkenende said the new government will not be able to avoid drastic action.
The 20 reports offer 'very great insight' into the options to make savings, the prime minister told reporters. 'It is now up to political parties to state what they will or will not do.'
The current cabinet is not able to take any action because it is in a caretaker role.
Each of the recommendations has a price tag attached, allowing parties to pick and choose the various elements.
What do you think of the proposals? Take part in our poll (http://www.dutchnews.nl/poll/index.php?poll_id=137)

Housing market:



Increase rents in popular areas and for high earners living in rent-controlled housing
Cut mortgage tax relief to a maximum €500,000 and limit tax break to 42% tax band
Unemployment, benefits and work
Cut unemployment benefit entitlement to one year
Reduce level of unemployment benefits
Merge various disability benefit systems in one unifying benefit
End link between benefits and inflation
Reduce government childcare contributions
Reduce minimum wage by 10%


Public sector



Slash provincial government and water board staffing from 13,000 to 1,650
Reduce the number of provincial governments from 12 to between five and eight
Reduce defence ministry staff by 23,000 and reduce support for international missions

Schools



Increase productivity, focusing on improving primary school education
Reduce spending on special education
Increase parental fees for school books
Increase primary school class sizes – recognising this will hurt standards
Reduce teaching hours in secondary schools


Higher education



Replace student grant system with loans
Double student fees for universities and colleges
Boost productivity and efficiency


Medical and residential care



Increase own-risk element in health insurance to up to €775
Reduce basic insurance package provisions
Introduce €5 charge for family doctor visits
Boost competition between healthcare providers
Reform ABWZ residential care system by giving patients an individual budget, shifting responsibility to local councils or health insurance companies
Increase fees for residential care homes
Stop paying for care for the mentally-handicapped with an IQ of over 70


Mobility, water



Introduction of peak period surcharge for motorists and public transport users
Increase public transport ticket prices 10% to pay for maintenance
Introduce kilometre tax for lorries
Scrap road building projects


Energy and climate



Scrap subsidy system and increase energy taxes
Force home owners of older buildings to improve insulation

Development aid and diplomacy



Reduce subsidies to independent aid organisations
Reduce number of countries which get aid
Close embassies and consulates


Immigration, integration



Reduce length of asylum procedure
Make immigrants pay for integration courses


Law and order



Merge the 26 separate police forces into one body
Increase fines
Merge some justice and home affairs ministry departments
Make event organisers pay for policing
Privatise some jails and the fire brigade
Legalise soft drugs trade (generating tax income)

(Sources, Financieele Dagblad, Telegraaf and Volkskrant)

[SwordoftheVistula]

Some seem good, some don't, others I don't see what effect they would have on the budget.


Increase primary school class sizes – recognizing this will hurt standards

Will it? They've done a lot of studies that show class size itself doesn't effect educational standards much, it is more rather students are grouped with other students of similar ability.



Increase rents in popular areas and for high earners living in rent-controlled housing

How does that effect the budget? Unless the government owns that housing as well? If so, just sell off that housing, and that will plug the hole in the budget and buy them some time to get the rest under control


Reduce minimum wage by 10%

How many government workers are on minimum wage anyways?

However, this would reduce unemployment and move more people from the welfare rolls to the workforce


Reduce teaching hours in secondary schools

How will that save money-unless teachers are paid an hourly wage instead of a set salary as in most countries?



Replace student grant system with loans

They did that here, and what happened was education costs skyrocketed, and left young people with a loan repayment burden, which is assuredly having quite a detrimental effect on the birthrate of educated people.


Stop paying for care for the mentally-handicapped with an IQ of over 70

How about the people under 70 IQ as well? If their families can't take care of them, perhaps euthanasia is in order, as you can't be cutting services to the other 99% of the population just to keep these people alive.


Introduction of peak period surcharge for motorists and public transport users

Increase public transport ticket prices 10% to pay for maintenance

Bad idea, since this will hit 'working poor' the hardest. The people who use transportation to get to work will be hit the hardest, and low income people will have to pay as much as high income people.


Introduce kilometer tax for lorries

Bad idea. A per gallon tax is the best choice in this realm as it encourages fuel efficiency.


Scrap road building projects

Bad idea, will have detrimental long term effect on economy if roads are congested


Force home owners of older buildings to improve insulation

Bad idea. I don't see what effect this would have on the government budget, and it could result in historic buildings being altered or damaged.


Make event organizers pay for policing

Only if it is the invited attendees of the organizers which result in the need for policing, especially commercial enterprises, for example concerts and sporting events. You shouldn't get a bill though just because a bunch of idiots want to show up and throw rocks at you (ie, antifa retards and muslims)



All the rest sound like good ideas