Gap between rich, poor widening in Netherlands due to tax system: report

Rich people in the Netherlands are only getting richer as the Dutch tax system fails to address economic disparities, according to a report on Wednesday.

In its analysis, the Bureau for Economic Policy Analysis (CPB) said that the tax system fails to address economic disparities between households and, in some cases, Dutch taxes are even widening the gap between rich and poor.

The figures revealed that between 2011 and 2019, the wealthiest 0.01% of households’ income increased by over 70%, while nearly everyone else saw their income increase by between 4% and 8%, according to the Dutch broadcaster NOS.

Meanwhile, in that same period, the share of income held by the top 1% richest households in the Netherlands increased from 12% to 15%.

"On paper, taxes in the Netherlands are progressive, but in practice, the highest earners pay relatively less tax than the group below," said the bureau.

The independent group noted that differences between households are widening in several ways, adding, income from corporate profits and investments has developed much more favorably over the past decades than the salaries of employees and civil servants.

In 2019, the average income of the top 1% was approximately €600,000 ($705,000), while for the top 0.01%, it was over $15.2 million.

The bureau also warned that this could affect equal opportunities.