Cover IMF Staff Country Reports
Kingdom of the Netherlands: Netherlands: Selected Issues-The Labor Income Tax Credit in an International Perspective
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2001: Issue 096
Language:
English
Publication Date:
06 Jul 2001
DOI:
https://doi.org/10.5089/9781451829471.002
ISBN:
9781451829471
ISSN:
1934-7685
Pages:
12
Keywords:
ISCR; CR; income; tax rate; EITC; earner; labor income; per-capita income; full-time equivalent; EITC offset; income earner; Personal income; Tax allowances; Marginal effective tax rate; Credit
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Compared with its U.S. and U.K. counterparts, the Labor Tax Credit (LTC) is likely to have more limited effects on incentives for primary-earners to enter the labor force, because of the smaller size of the credit. Any significant increase in the LTC to strengthen its effect on the still large poverty trap in the Netherlands is likely to be extremely expensive. Given the easy availability of part-time employment and the high marginal tax rates, the reduction in hours worked could be substantial in the Netherlands.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2001: Issue 096