<p>In a nutshell, parents in Belgium are not happy with the 15 percent reduction in their EXTRA family allowances paid in August. This allowance serves to defray the cost of buying supplies for the upcoming school year. Supplies as in a backpack of pencils. The rest, just as the entire cost of educating children at public AND private schools is covered by the government. Only non-recognized schools remain outside the free system. Religious schools, including schools for Muslims, are part of the recognized system. </p>
<p>Note that the school payment is an extraordinary one that completes the regular monthly payments. For reference, a family with two children receives about 400 dollars in direct cash allowances per ... month, or about 5,000 per year. </p>
<p>Brings some perspective to all the dialogues about the cost of education in the US! </p>
<p>Don’t forget that countries in Europe collect about half of income in taxes. So, while the gov supports a lot, as in day care, private schools, etc, tax dollars pay for it, so higher taxes for all!</p>
<p>So, someone earning $50,000 (US dollars) or more, has to pay 50% in taxes (minus the standard personal allowance; about $9,000), plus up to 9% in municipal taxes (or 7% if a non-resident). </p>
<p>If I was paying so much in taxes, I would want my free stuff too! </p>
<p>EDIT: By the way, Belgium’s 50% tax rate places it 2nd in the world, only behind the Netherlands 52% rate. Good Times…</p>
<p>Different systems and different objectives. The gross salaries reflect the high taxation and employees tend to look at the net salary to establish their disposable income. That disposable income might be different from our system as many services are free or low-cost. Money does indeed come from somewhere and there are no secrets: it comes from direct and indirect taxes. They pay much more than we do at the pump … but avoid multiple cars and gas guzzlers. This said, middle managers also benefit from perks such as company cars and generous pensions. Most employees get meal coupons or allowances. Those benefits might not be taxable. </p>
<p>The real question would be about the differences between a single person earning 100,000 in New York or San Francisco versus someone in Antwerp and a family with two school-aged kids. Where do you think the after taxes money gets you the most? And where do you get the most after paying health, education, and housing costs including property taxes. </p>
<p>Just think how different the cost of tertiary education is. It might be less than 1,000 per year for tuition at Belgian universities. </p>
<p>The stated level of taxes might be a poor indicator of well-being. the free stuff is one thing – but getting (non welfare) cash allowances for children is a totally foreign concept in the US </p>
<p>Why is that the question? I thought your point was “parents in Belgium are not happy with the 15 percent reduction in their EXTRA family allowances paid in August.” My point was with the taxes they pay, it makes them even more sensitive to reductions in services/allowances.</p>
<p>US (318+ million people) quality of life vs. Belgium’s (less than 11 million) is a completely different question!</p>
<p>All this reminds me of Gerard Depardieu (and 2,800+ others folks) leaving France, back in 2012, and moving to Belgium to avoid the new proposed wealth taxes in France. Belgium as a tax haven…go figure. </p>
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