CH02.03 Taxation

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Welcome

3 TVWO |  2020-2021

Chapter 2

The government around us

Program

• Recap assignment
• Learning outcome
• Theory/practice
• Time to work

Write down wat you remember the last lesson.

If you don't remember anything, fill in a "?".

Today's learning outcome

By the end of this lesson you should be able to explain how the Dutch taxation system works. 

Therefore, you can

- explain the differents between a degressive, proportional and progressive taxation system;

- calculate the net income of someone.

Progressive taxation system (2.17)

	Income	Income tax	Tax rate
Majid	€ 50,000	€ 12,500	%
Roos	€ 30,000	€ 6,000	%

Progressive taxation system (2.17)

Progressive taxation system:

Higher incomes pay a higher average tax rate than lower incomes.

	Income	Income tax	Tax rate
Majid	€ 50,000	€ 12,500	25%
Roos	€ 30,000	€ 6,000	20%

Proportional taxation system (2.18)

	Income	Income tax	Tax rate
Patrick	€ 40,000	€ 8,000	%
Roeland	€ 20,000	€ 4,000	%

Proportional taxation system (2.18)

Proportional taxation system:

A tax system in which all incomes pay the same tax rate.

	Income	Income tax	Tax rate
Patrick	€ 40,000	€ 8,000	20%
Roeland	€ 20,000	€ 4,000	20%

Degressive taxation system (2.19)

	Income	Income tax	Tax rate
Annika	€ 85,000	€ 19,125	%
Simone	€ 35,000	€ 8,400	%

Degressive taxation system (2.19)

Degressive taxation system:

A tax system in which the percentage of levied tax decreases if the income increases.

	Income	Income tax	Tax rate
Annika	€ 85,000	€ 19,125	22.5%
Simone	€ 35,000	€ 8,400	24%

Homework

Society

Chapter 2

Look up advantages and disadvantages 

of each taxation system (see classroom)

Importance: 

Practice with the three different taxation systems

Which system do you think we use in the Netherlands?

1. Degressive system
2. Progressive system
3. Proportional system