Tax reform to support growth and employment in Finland:

Finland raises a large amount of taxes to finance high-quality public services and redistribute income. Public finances are currently relatively solid and taxes and transfers reduce income inequality significantly. However, a rapidly ageing population pushes up public spending, while globalisation c...

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Bibliographic Details
Main Author: André, Christophe (Author)
Other Authors: Hwang, Hyunjeong (Contributor)
Format: Electronic eBook
Language:English
Published: Paris OECD Publishing 2018
Series:OECD Economics Department Working Papers
Subjects:
Online Access:Volltext
Summary:Finland raises a large amount of taxes to finance high-quality public services and redistribute income. Public finances are currently relatively solid and taxes and transfers reduce income inequality significantly. However, a rapidly ageing population pushes up public spending, while globalisation creates challenges in raising revenue. Hence, ensuring long-term fiscal sustainability requires both containing spending through efficiency gains in the provision of public services and raising revenue in a way that minimises deadweight costs and distortions weighing on growth and employment. Reducing further the tax wedge on labour income would lift employment. More revenue could be raised through a reduction in the range of goods and services subject to reduced VAT rates, higher taxes on consumption that is harmful to the environment or health and higher property taxes. A competitive corporate taxation, combined with international cooperation to avoid base erosion and profit shifting, is needed to foster local production
Physical Description:1 Online-Ressource (25 Seiten)
DOI:10.1787/412834d3-en

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