The objective of tax incentives is to increase employment and thus the sustainability of public finances, ensuring the quality and accessibility of public services.The sustainability of the public sector is ensured by strengthening operational efficiency.Provincial and military reform must not lead to higher taxes.Wage taxation must be reduced moderately at all levels of income, which will be made possible in particular by a deliberate increase in harmful taxes.
The Right Efforts
Efforts must be made to reduce income taxation at all income levels. Calculating income tax is important to safeguard purchasing power in a situation where wage increases are very moderate.
Reduction of income tax is possible by raising consumption taxes, such as alcohol and tobacco taxes, and environmental taxes. In addition, other possible ways of taxing harm must be found.
The various rates of VAT shall be maintained at their current level, in particular for services
- The reduced VAT rates are important from the point of view of the various professions and industries in Special Areas. The reduced tax rates apply to e.g. sports and cultural services and tourism.
- The Special Areas has a negative attitude towards the uniform raising of VAT rates or the raising of individual tax rates, because as a regressive Tax, it taxes the most low-income people.
- Corporate taxation and entrepreneurial VAT must be developed in such a way as to improve the status and livelihood of the entrepreneur and not to devote resources to further reducing the corporate tax rate.
For an entrepreneur, income tax is most often the most important tax. Reducing income tax supports entrepreneurship and self-employment. Use the income tax calculator for the best result.
In VAT, the abolition of retroactivity and the raising of the ceiling for tax relief will support entrepreneurship and self-employment.
Tax solutions are also needed to break down incentive traps
Continue to dismantle incentive traps. Housing allowance is developed together with the income income deduction and the earnings income deduction.
Tight tax bases, low tax rates, fall under the constant mantra of tax experts when asked how they should be taxed. A tight tax base means, among other things, that various types of income and types of companies are taxed comprehensively. This curbs harmful tax evasion and provides lunch for fair and equitable taxation. The tax exemption for institutional investors and other entities exempt from dividend tax is one of the key gaps in the tax base.
Conclusion
It is estimated that Finnish listed companies will distribute a record dividend of almost EUR 13 billion this spring. The majority of these dividends are paid to domestic and foreign entities that do not pay any tax to Finland. Pension funds, mutual funds, companies managing the insurance envelopes of their customers, as well as non-profit associations and foundations, among others, are exempt from dividend tax.
