Editorial: Purchasing power

POSTED: 01/17/14 12:19 PM

Parliamentarians are not happy with the fact that employees will have to pay a double premium for healthcare insurance this year. The measure will save the government 10 million guilders per year in 2014 and 2015, but the ultimate effect of the measure remains unclear.

What is clear however is that the additional 10 million guilders employees are going to contribute to healthcare insurance is money they will not have in their pockets during the next two years.

In other words: with the stroke of a pen, the decline in the population’s purchasing power equals their contribution to the healthcare insurance fund.

This must affect consumer spending one way or the other; it must also have an effect on revenue from turnover tax. More in general, the measure could affect the health of the business community.

While the 10 million guilders are not lost – employees get insurance for their family members in return – the downside of the measure will only become clear over time.

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