The Dutch-speaking socialist party, Vooruit, is putting the proposed millionaire's contribution on the table during the upcoming federal budget discussions, the party announced in a press release on Wednesday.
The millionaire's contribution is an annual progressive contribution on the total financial assets of a person who owns more than €1 million.
"By taking into account the total financial assets per person for the first time...we are putting an end to fiscal discrimination between different financial assets and making the new contribution much more difficult to avoid,’ the party explained.
According to Vooruit, the measure is feasible within the current framework for the tax authorities and the Central Point of Contact (CAP) that collects all data on persons liable for tax in Belgium.
"Today, we see that those with more than €1 million in financial assets are not making a fair contribution," said Vooruit leader Conner Rousseau. "Those who work pay half their wages in tax, while those who have more than a million in their account(s) pay virtually nothing. With our proposal, we are ensuring that the richest 1% in our country finally make a fair contribution."
On the VRT radio programme De Ochtend, Rousseau spoke of a "very reasonable proposal" that is actually an extension of the existing securities tax.
Rousseau explained that a contribution of 0.3% would be requested on assets of more than €1 million, rising to 0.45% for assets above €2 million and to 0.6% for individuals with more than €3 million. According to Rousseau, this would affect around 150,000 people.
The Vooruit leader added that "everyone will have to compromise a little" during the budget negotiations. "If you say, 'we are not going to make any concessions', which is what the [right-wing liberal party] MR is saying, then you are deceiving people," he said. "As in any household or marriage, you sometimes have to make concessions to get the accounts in order."
Rousseau describes the millionaire's contribution as "an important point" in the negotiations, but unlike the capital gains tax, this proposal is not included in the coalition agreement. "The additional defence spending wasn't in there either," he added. "These are unforeseen circumstances, unprecedentedly difficult times, and we need to respond with unprecedented force."
