Writing endless reports, but not achieving anything

Peter Kavelaars, Professor of Fiscal Economics at Erasmus School of Economics
Erasmus School of Economics

Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, discusses the finance ministry's new report in an article in the Telegraaf. Every time, new reports are written with nice tax plans, but is anything actually done with them?

Every four years, another thick report is published by the Ministry of Finance. This report contains many recommendations for a better tax system. Kavelaars points out that there are many useful things in it, but still we do not move forward. Each time, new solutions are looked at further, but never anything is done with the earlier advice. Kavelaars would prefer to see thee earlier advices being addressed. Now, people keep writing reports but we don't get anywhere. 

Rigorous reductions are not necessary, according to Kavelaars. He suggests cutting schemes that do not work first, in order to free up money for those that do work. Indeed, research by the finance ministry shows that most of the schemes are not proven to work. Yet, changing them is difficult because there is a political game involved. Because politicians are afraid of their constituencies, they dare not take action. There is no need to reinvent the wheel, politicians can find enough guidance in the reports that are all ready to go.

Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics
More information

You can read the full article from De Telegraaf, 24 February 2024, here

You can download the full article from De Telegraaf, 24 February 2024, above.

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