Effects of the proposed regional income tax on the regions’ receipts
Fiscal autonomy is the political issue of the past couple of months. Negotiations between Flanders and French speaking Belgium have been tripped up by it several times. It is essential that the financial consequences of a new, modified finance law are correctly being represented. No political or societal debate can benefit from wrong representations of the consequences of certain choices. On the contrary, only an open debate that takes nobody for a fool can and will lead to an agreement. This is the purpose of this Leuvens Economisch Standpunt that uses a calculation model that differs from all computations presented so far as it takes into account the taxation burden for every Flemish, Walloon and Brussels family. This allows to truly representing the progressivity effects of the proposed reform. Macro computations cannot do this.
Beyond Copernicus:From Confusion to Consensus?
The 2000 Copernicus reform has faded away before flourishing. Belgium has the highest public spending and public employment in the OECD and still the relative quality and quantity of public services remain disappointing. With so many challenges ahead such as globalisation, population aging, the race for talents, the digital revolution, it is urgent to send a wake-up call for a government that is steering and not rowing. Jean Hindriks makes the diagnosis and suggests several “quick wins”.
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