In Belgium a consensus is arising that taxpayers should declare both their income from capital and income from labor in their income tax declaration. Advocates of this idea suggest that the income tax scale should be revised, to strengthen the progressiveness of taxation.
In addition, there is overwhelming agreement that the tax system should be simplified, and that the number of tax breaks should be reduced. Most of the tax breaks are considered to be no longer justifiable from an economic point of view. As regards plans to reform the corporate tax system, many commentators in Belgium consider that the nominal rate of corporation tax should be brought into line with the European average. To ensure budget neutrality, most experts and political parties are recommending that these measures should be accompanied by the progressive abolition of the notional interest mechanism.
