TW: A Dutch ex-pat living in NYC responds to Shorto's American ex-pat living in Holland story. I guess the grass IS always greener on the other side of the pond. Mees' piece focuses on things other than the health-care discussed in my post. But I found it interesting nevertheless reading what an ex-pat thinks of our systems. One note Shorto's point on the tax rates is the 50%+ rate in Holland is high but not as high as one would initially think once all payroll, state and local taxes are added in since Holland does not tax those items separately but all in one fat rate. They have an on-line discussion going at the NRC site should u be interested.
From NRC Handelsblad:
"...Of course Shorto loves the welfare state. The top income-tax rate of 52 percent for all income above 65,000 dollar doesn't hurt him. As an expatriate Shorto's income tax is reduced by 30 percent for a period of ten years. Other mortals in the Netherlands, however, face a marginal tax rate of over 55 percent on every euro earned, not to mention the 7 dollar they pay for a gallon of gasoline and the 19 percent value added tax on all goods and services they purchase.
More importantly, the Dutch welfare state isn't as beneficial to low-skilled immigrants as it is to Russell Shorto. In fact, it has suffocated the large group of non-western immigrants (mostly from Morocco and Turkey) who came to the Netherlands over the past decades to seek their fortune.
Though one would assume that a caring state should be able to ensure a higher quality of life than an “uncaring” state, in actual practice this isn't the case at all.
Due to the high cost of labour (20-25 dollars per hour at minimum wage level) many low-skilled immigrants can't find a job and are forced to spend their lives in subsidised isolation. In the Netherlands, immigrants and people of immigrant background in the 15 to 65 age group are four times more likely to live on public assistance than other people in that age group; they are also over-represented in the crime statistics.
In New York it is exactly the other way around. Immigrants commit less crime and are less often unemployed. The gross minimum wage is lower than in the Netherlands at 7.25 dollars, but thanks to the Earned Income Tax Credit (EITC) people with annual incomes up to 37,000 dollars actually end up with more money after taxes than before.
The EITC is dependent on a person's salary and family situation and is capped at 4,800 dollars per year. This way the gross cost of labour is kept down and more jobs are created in the bottom segment of the market, both in the public and in the private sector..." http://www.nrc.nl/international/opinion/article2248923.ece/Going_Dutch_Not_So_Fast%21_
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