# Dutch Income Tax



## heckmantis (Jan 31, 2013)

I have just recently moved to the Netherlands and I have been wondering what the income tax I am paying goes towards. All the other European countries with similar high tax rates have universal healthcare, but here it's all private (though federally mandated) so none of the tax money goes to it, other than for long term disability. 

So then where does the tax money go? Is the social security system that much more than other European countries? Is there something else that taxes here pay for that other countries don't have? It just seems crazy that for our tax rate we don't get healthcare like elsewhere in Europe!


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## Bevdeforges (Nov 16, 2007)

In many countries in Europe there is a difference between "income taxes" and social benefits (what would be called "payroll taxes" in the US). Income taxes go toward things like national defense, the costs of running the government, national parks, the national educational system (usually centralized - unlike in the US). Social insurances are for public benefits plus retirement.
Cheers,
Bev


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## cschrd2 (Oct 31, 2011)

You Dutch income tax is part social security, part paying for local government (you will find local property taxes are a fraction of those in the US), a part is filling gaps in the health care system (the 100€/month premium is surely not enough to cover the cost) and a serious part is for education (most education is (nearly) free).


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