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New twist in tax plan soap: D66 open to millionaire's tax, while VVD remains opposed

New twist in tax plan soap: D66 open to millionaire's tax, while VVD remains opposed

A proposal by opposition parties to introduce a millionaire's tax in exchange for supporting the cabinet's budget has caused a deep rift within the Dutch coalition. While D66 and the CDA are open to negotiations, the VVD rejects the plan, creating significant uncertainty regarding the government's stability and its ability to secure a parliamentary majority.

The Dutch coalition is facing significant internal tension over a new tax plan proposal from opposition parties PRO and Volt. These parties are offering to support the government's tax package in exchange for the implementation of a new tax on millionaires, which would include higher levies on inheritances and a 45 percent top rate on assets in box 3. While D66 and the CDA have expressed a willingness to discuss these measures, the VVD remains strongly opposed, labeling such taxes unacceptable. This disagreement has sparked concerns about the potential for the coalition to fracture, with some members suggesting that coalition partners might even cast split votes on the matter.

The situation is further complicated by the government's need for opposition support to pass its broader tax plans in Parliament. While the coalition could theoretically seek support from right-wing parties like the BBB, JA21, and SGP, the demands of those parties—which include ending the asylum dispersal law and relaxing nitrogen policies—are considered non-negotiable by the government. As a result, the coalition is struggling to navigate a path forward, leaving the stability of the minority cabinet increasingly uncertain as debates continue.

Based on reporting by ad. Translated and condensed by LocalHeadlines.

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