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What are the wide-ranging implications and potential side effects of the tax reforms implemented in the Netherlands?
Question
Including their impact on various socio-economic factors such as income distribution, business competitiveness, investment incentives, public finances, and overall economic growth?
Answer ( 1 )
The disappearance of the tax deduction has not been replaced by other credits, deductions or exemptions. One side-effect can be that child support payments will be lowered as a result, as the amount to be paid is based on the total financial situation of the father, including all tax-related items.