Highest incomes most often in favour of mortgage interest deduction

06/06/2013 15:00

The majority of Dutch aged 18 years and older are in favour of preserving the mortgage interest relief scheme, but the group of opponents is growing. In 2010, 23 percent were in favour of abolition versus more than 30 percent in 2012. More high than low-income earners advocate abolition of the scheme.

Highest support for mortgage interest deduction among middle-income earners

Nearly 40 percent of adult Dutch in the highest income group want to impose restraints on mortgage interest deduction. The proportion is significantly higher than among middle-income earners (between 26 and 30 percent).

In the lowest income bracket, the topic is less controversial, because the majority of low-income earners are tenants. Tenants are more inclined to be in favour of abolition than home owners: 42 versus 27 percent.

Tax benefits mortgage interest deduction must be abolished

Tax benefits mortgage interest deduction must be 
abolished

Mainly highest incomes in favour of abolition

Relative to 2010, the number of people in favour of abolition of the home mortgage interest deduction has increased across all income groups, but the most substantial increase is found among the highest incomes: from 26 to 39 percent. This is remarkable, because the 20 percent highest income earners receive nearly half of the total tax benefit resulting from mortgage interest relief. This income group does have the smallest relative advantage of the deduction scheme.

Only 16 percent of well-to-do people in favour of tax cuts

More than a quarter in the Dutch adult population are in favour of tax cuts, even if it is detrimental to the level of facilities. This category has grown marginally since 2010. With 16 percent, the smallest group in favour of tax cuts is found in the highest income bracket. In the two lowest income categories more than one third are in favour.

Reduce taxes, even if it is detrimental to of the level of facilities

Reduce taxes, even if it is detrimental to of the 
level of facilities

Widespread consensus about redistribution of wealth

Nearly 60 percent in the population think that income differences in the Netherlands should be reduced. More than one quarter want things to stay as they are, while 15 percent are in favour of widening the income gap. Opinions about this issue are almost the same across all income groups. The level of income inequality has not changed in the Netherlands in recent years.

Marion van den Brakel and Rik Linssen