OECD: Tax burden falls most substantially in Belgium

According to a report from the OECD The Organisation for Economic Cooperation and Development (OECD), established in 1961 as a result of the Marshall Plan, is a cooperation agreement between 34 countries in order to study and coordinate social and economic policy. The member countries try to solve their problems jointly and to mutually align their international policy. The organisation also collects statistical information to make comparative analyses. These OECD analyses are a valuable basis for the N-VA to test policy against itself or even to give shape to it. OECD , Belgium is one of the organisation’s 35 member countries where the tax burden decreased most substantially in 2016. “This government has made efforts to reduce the tax burden, among other things through a Tax shift There is a tax shift when a new tax is implemented or an existing tax is increased in order to reduce or get rid of another tax. The N-VA is a proponent of a shift of the burden on labour to that on consumption or environmental pollution, for example, but not of a tax that increases the total burden of taxation. tax shift ,” Minister of Finance Johan Van Overtveldt explains. “The latest OECD figures show that these efforts are working and that everyone is benefiting from them today, with those with the lowest incomes actually benefiting the most.”

Together with Austria, Belgium is the only country in which the tax burden for single employees without children decreased by more than one percentage point in 2016. According to the OECD this is due to lower personal income tax and employer contributions for Social security Social security is currently managed at the Federal level in Belgium. The most important pillars of Belgian social security are: sickness and invalidity insurance (NIDHI), pensions, unemployment insurance and child allowances. In addition, occupational illness, occupational accidents and annual holidays are dealt with at this level. Some Flemish parties have been campaigning for years for (large parts of) social security to be transferred to the Regions and Communities. social security , which are indeed a consequence of this government’s tax shift. A similar effect also applies for families.

Private-sector job creation

“The tax shift has moreover boosted job creation in the private sector,” Johan Van Overtveldt adds. “This does not, however, change the fact that the tax burden in this country is still too high. We must now keep up the positive trend that has been put in place,” the Minister concludes.