Aart Gerritsen, Associate Professor at Erasmus School of Economics, comments in the daily newspaper Het Parool on the alternative tax plan proposed by political parties PRO and Volt. The parties aim to raise €1.5 billion from the wealthiest members of society, partly by increasing taxes on large fortunes. Gerritsen questions several aspects of the proposal and points to alternative ways of achieving a fairer distribution of the tax burden.
Under the proposal put forward by PRO and Volt, the top tax rate for the wealthiest taxpayers would increase from 36 to 45 per cent. The parties also want to tackle tax arrangements used by wealthy individuals to reduce their tax liabilities, and increase inheritance and gift taxes. The additional revenue would be used to reduce income tax for working people.
According to Gerritsen, fears that wealthy individuals will leave the Netherlands en masse in response to higher taxes are exaggerated. Although wealth is easier to move across national borders than labour, wealthy individuals tend to opt for alternative tax arrangements in practice, such as transferring assets to their own private limited companies.
Gerritsen understands the intention to shift more of the tax burden towards wealthier individuals, but questions whether raising the top tax rate to 45 per cent is the right approach. This would make the Netherlands a European frontrunner. Moreover, the majority of wealth in the Netherlands is not held in tax categories 2 and 3, but in housing and pensions. In his view, these are precisely the areas where there is scope for a more balanced tax system.
Gerritsen is more positive about tackling tax arrangements that allow wealthy individuals to avoid paying their fair share of tax. For example, the proposal would make it more difficult to borrow money from one's own private limited company. According to Gerritsen, closing such loopholes in tax legislation could generate meaningful additional revenue.
He also considers higher inheritance and gift taxes economically justifiable. Although such measures are politically difficult to sell, he regards inheritance tax as a relatively efficient way of raising revenue from those who can afford to pay.
'Start by looking at housing and pensions'
If Gerritsen had his way, policymakers would focus primarily on the tax treatment of housing and pensions. The government provides various forms of tax support for these assets, even though they account for the largest share of wealth in the Netherlands. From an economic perspective, he argues, increasing the tax burden on owner-occupied homes slightly would make much more sense.
However, the political reality makes reform difficult. Gerritsen points out that mortgages, pensions, wealth and inheritance tax are all politically sensitive issues for the VVD. His conclusion is that tackling tax loopholes is sensible, but raising the top tax rate to 45 per cent is not. In his view, the greatest opportunities for creating a more balanced tax system lie in housing and pensions.
- Associate professor
- More information
See the attachments for the full interview (in Dutch), published in Het Parool on 6 November 2026. For more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl, mobile: +31 6 53 641 846.
