DutchNews, August 5, 2015
Other Dutch cities may join Utrecht in
experimenting with a ‘basic income’ to replace the current complicated system
of taxes, social security benefits and top-up benefits, the Financieele Dagblad
says on Wednesday.
In June, Utrecht city council announced plans to launch
trials of the new system after the summer holidays together with researchers
from Utrecht University. Now Tilburg has similar plans and aims to run a four-year
trial, the FD says.
Groningen, Maastricht, Gouda, Enschede, Nijmegen and
Wageningen are also looking at the concept and dozens of other councils have
expressed an interest in the idea, the paper says.
If junior social affairs
minister Jetta Klijnsma approves the Utrecht plan, all welfare benefit
claimants will be asked if they would like to join in.
One group will continue
under the present system of welfare plus supplementary benefits for housing and
health insurance. A second group will get benefits based on a system of
incentives and rewards and a third group will have a basic income with no
extras.
In theory, a basic income consists of a flat income to cover living
costs which, supporters say, will free up people to work more flexible hours,
do volunteer work and study. Additional income is subject to income tax.
The FD
says the social affairs ministry states that the new laws covering welfare
benefits allow ‘some room’ for experimentation. However, neither Utrecht or
Tilburg have yet made a formal request to do so, a spokesman told the paper.
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