Friday , March 31 2023

Child Support vs Tax Credit being discussed with Executive Council

On the occasion of the budget debate Social Affairs in 2014, the Second Chamber adopted a motion of the member Schouten, which the government is requested to examine in 2014 the possibilities for the child tax credit in Bonaire, Sint Eustatius and Saba in order to create a family benefit scheme.

The basis for the motion was that, in the current system where the higher incomes receive a reduction of income tax, would not help to ease the problems for families with lower incomes. A child benefit scheme instead would raise that objection.

State Secretary Jetta Klijnsma
State Secretary Jetta Klijnsma

Today, the State Secretary for Social Affairs and Employment, Jetta Klijnsma wrote to the Second Chamber that she is now talking to the Executive Councils of Bonaire, Sint Eustatius and Saba about the creation of a form of child benefit. The people with lower income that, currently, do not benefit from tax relief would then become become eligible for child support benefits. Assuming a budget neutral conversion, this means that the child support would amount to approximately $ 20 per month.

However the Executive Councils have objected to this amount, because, for those with the higher income, it would result in a reduction of benefits ,i.e., a reduction from about $ 38 to $ 20 per month. Because of these objections, the State Secretary wrote that she needs further consultation with the Executive Councils and also discuss the practical application and the timing of the introduction.

Read the letter here (in Dutch)

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