Advanced Search
MyIDEAS: Login

Options for Reforming the Finnish Tax System

Contents:

Author Info

  • Isabelle Joumard
  • Wim Suyker

Abstract

This paper reviews the Finnish tax system and the scope for further tax reform. Finland is among the most egalitarian countries in the OECD and a high tax burden is required to finance the associated public spending. Nevertheless, capital and corporate income taxation was substantially and effectively reformed in the early 1990s, through significant rate cuts cum base broadening measures. But, despite income tax cuts since the mid-1990s, high taxes, especially on labour income, still hamper growth potential and distort economic behaviour. In this respect, the poor performance of the Finnish labour market is revealing. Tax reforms have a major role to play in improving the long-term performance of the Finnish economy. Though the scope is limited, the tax burden should be shifted as much as possible from labour to property and consumption, while the earned-income tax allowance should play a smaller role, enabling cuts in statutory rates. Redesigning social security contributions to ... Options pour la réforme du système fiscal finlandais Cette étude examine le système fiscal finlandais et propose une série de nouvelles réformes dans ce domaine. L’équité est une des préoccupations majeures en Finlande. Cela se traduit par des dépenses publiques élevées, et des prélèvements fiscaux en conséquence. Néanmoins, l’imposition du capital et des bénéfices des sociétés a fait l’objet d’une réforme ambitieuse au début des années 90, avec des resultants satisfaisants. Les taux d’imposition ont nettement été réduits, alors que les régimes favorables ont été pour la plupart éliminés. Sur le marché du travail en revanche, la fiscalité continue d’engendrer des distorsions et de peser sensiblement sur le potentiel de croissance de l’économie, malgré les réductions de l’impôt sur le revenu survenues depuis la seconde moitié des années 90. A cet égard, les résultats médiocres obtenus sur le marché finlandais du travail sont révélateurs. Les réformes fiscales ont un rôle majeur à jouer dans l’amélioration des performances à long ...

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1787/148170527338
Download Restriction: no

Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 319.

as in new window
Length:
Date of creation: 07 Feb 2002
Date of revision:
Handle: RePEc:oec:ecoaaa:319-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Email:
Web page: http://www.oecd.org
More information through EDIRC

Related research

Keywords: tax reform; taxation; Finland; tax policy; earned-income tax allowance; Finlande; politique fiscale; abattement fiscal sur les revenus du travail; fiscalité; réforme fiscale;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fidel Picos Sánchez & Alberto Gago Rodríguez, 2004. "El impuesto dual: argumentos teóricos e implicaciones de política fiscal," Hacienda Pública Española, IEF, vol. 171(4), pages 103-130, december.
  2. Luca Gandullia, 2012. "The role of direct taxes in fiscal decentralization," DEP - series of economic working papers 6/2012, University of Genoa, Research Doctorate in Public Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:319-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.