Dutch employers recently went after opponents of the mortgage allowance head-on. A document from the Confederation of Netherlands Industry and Employers (VNO-NCW) and the small and medium-sized enterprises sector (MKB-Nederland) says that every intervention is bad for the economy. Chairman Bernard Wientes says that if the mortgage allowance is taken away, it will hurt the economy, especially the construction industry. So far, only the parties on the left want to get rid of the mortgage allowance.
Wouter Bos (PvdA), the leader of the Labour Party, says he wants restrictions but not an end to the law. He says again that PvdA wants to cap the rate at 42%. Millionaires are the ones who have to give up, not the man on the street. But earlier, a report from the PvdA said that putting this limit at 42 percent would be the first step toward getting rid of it.
The next step would be getting money to cover living costs. Like the rental assistance, this would mostly help people with lower incomes. But the employers argue that the opposite is true:
- People who get a 52% mortgage allowance also pay a 52% tax rate
- The reason there aren't enough houses on the market is because there aren't enough houses and enough traffic.
- Many homeowners have had their interest rate locked in for a long time
- Renters get more help than owners
- Fraudulent use of the mortgage allowance has already been taken care of
The Dutch government did different things with the money. First of all, a homeowner can only use the mortgage interest on their main home to reduce their tax bill. Second, the maximum sentence is 30 years. Third, when you add more to your mortgage, the extra money can only be taken off if it is used to make improvements to your home.
Wientjes ends his case with one last point. When the allowance is cut, people with higher incomes will have to buy cheaper homes. This will cause a shortage of homes in the lower segment, which will cause prices to go up.
This is not the last time the "M-word" will stir up debate in the Netherlands.
