Leveling is the process of trying to achieve an equal level in a certain way. More specifically, it is often meant that income can be matched by government intervention. There are several reasons and tools for this. Denialing is the opposite of leveling. Reasons for leveling
Governments often, according to some, wrongly level out from the principle of equality. Opponents claim that equal treatment has nothing to do with draining and redistribution of income. It is a way for the government to transfer wealth to lower income groups. This may also have an economic motive: possibly more money will be spent, so consumption will increase. Also, some political parties find that taxation costs should be divided in such a way that "the strongest shoulders carry the heaviest burdens."
On the other hand, leveling out the motivation to work more or gain a better paid job and reduce retention. The economic stronger could decide to emigrate or restructure their income so that this would be subject to foreign taxation. This leads to an exodus of knowledge and exclusion of the tax base. Instruments
For example, the leveling of gross income (and as a result of net income) can be within a company, because the employer allocates a relatively high salary increase for lower income (for example, because everyone gets a fixed amount).
The government can also apply leveling to given gross income, by such tax rates and other measures (all kinds of bonuses and surcharges) that relative disposable income is relatively less than gross income; in other words: by high and / or increasing marginal pressure.
The most well-known is the progressive tax, where the tax rate is linked to the income or ability of the taxpayer. The more you deserve / have, the higher the percentage of income / capital that one has to deduct. The top rate in the Netherlands is currently 52%, but was previously 72%. Also income transfers such as the assistance scheme and the former Zalmsnip, actually a form of negative tax, work leveling. Another example is income-dependent child support, with less people receiving higher income. In the run-up to the cabinet formation in 2012, much has been done about the income-dependent care premium (IAP), whereby higher-income people would pay more premiums. After a lot of commotion had arisen over this, instead, we chose a partial reduction of the general tax rebate (which is leveling), and in addition to the construction of the labor shortage in low labor income (denialing, stimulating work) a further reduction of this at higher incomes (leveling). Also see
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