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Archive for the ‘Netherlands’ Category

By every possible metric, one would expect corporate tax rates to be higher in Europe. The burden of government spending is higher across the Atlantic, so that presumably would lead to pressure for a higher corporate tax rate. The affinity for class warfare and anti-business policies is more pronounced in Europe, so that should mean more punitive policies in the Old World.

Yet the corporate tax rate is Europe has now dropped, on average, to less than 25 percent, and the American corporate tax remains at more than 39 percent (including the average of state tax burdens). The latest development in Europe, according to Tax-news.com, is that the Netherlands is reducing its rate to 25 percent.

Dutch Finance Minister Jan Kees de Jager has unveiled key details of the country’s 2011 tax plan, containing a number of fiscal measures designed to encourage entrepreneurship and innovation… The 2011 tax plan includes plans to reduce corporation tax in 2011 to 25%. The government also plans to make permanent the reduced rate 20% corporate tax rate on the first EUR200,000 in profit, announced last year and retroactive to 2008. In addition, companies will significantly benefit from the extension by one year of the temporary three-year loss carry-back facility (previously losses could be carried back for just one year) as well as the extension of the temporary accelerated depreciation scheme, which allows certain capital assets to be depreciated at 50% per year, to investments made in 2011 as well as those made in 2009 and 2010.

So why is Europe moving in the right direction on this issue and America lagging? The simple (and accurate) answer is tax competition. Governments are lowering tax rates because politicians think that is their only option if they want to attract jobs and investment. Europe’s economies are so interconnected and cross-border mobility of jobs and investment is so large that politicians are being forced to do the right thing, even though all their normal impulses are the opposite. This video explains, followed by a video showing why corporate tax rates should be lower.

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Eline van den Broek probably is not happy today since she was in South Africa watching her team lose a high-scoring battle with Spain, but she should be very proud of the new video she narrated that urges the repeal of Obamacare – and also points out some of the other reforms that are needed to restore markets to the US healthcare system.

Her comments on how the American healthcare system was a mess even before Obamacare are particularly important.

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We’ve already addressed this issue in a different context, but this story is even more amusng. I’ll resist the need for any (additional) awful puns, and I’ll even admit I don’t know for sure that these…um…services are financed by taxpayers (but that must be true since we’re talking about the Netherlands, right?). But is this really such a big issue for the Dutch that the nurses need to mount a national campaign?

A union representing Dutch nurses will launch a national campaign Friday against demands for sexual services by patients who claim it should be part of their standard care. …The union said in a statement Thursday that the campaign follows a complaint it had received in the last week from a 24-year-old woman who said a 42-year-old disabled man asked her to provide sexual services as part of his care at home. The young woman witnessed some of the man’s other nurses offering him sexual gratification, the union said. When she refused to do the same, he tried to dismiss her on the grounds that she was unfit to provide care.

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I was vaguely aware the there was a school choice system in the Netherlands, but I had no idea how good it was. Nearly three-fourths of all schools are privately controlled. Not surprisingly, the Dutch score very highly compared to other nations. Here’s some of the data from a recent study:

One of the key features of the Dutch education system is freedom of education—freedom to establish schools and organize teaching. Almost 70 percent of schools in the Netherlands are administered by private school boards… it is shown that the Dutch system promotes academic performance. The instrumental variables results show that private school attendance is associated with higher test scores. …a significant part of the high achievement of Dutch students in international achievement tests is due to the institutional features associated with school choice. …Money follows students and each school receives for each student enrolled a sum equivalent to the per capita cost of public schooling. …achievement levels are high, while relative costs are low. …Private school size effects in math, reading and science achievement are 0.17, 0.28 and 0.18, all significant. Given PISA’s scaling, this is close to 0.2 of a standard deviation in the case of math and science, and almost 0.3 of a standard deviation in reading. In other words, these are large effect size effects, indicating that school choice contributes to achievement in Netherlands.

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