IDEAS home Printed from https://ideas.repec.org/p/rif/report/172.html

The Societal Costs of Taxation – What Do We Know About the Adverse Effects of Finnish Taxes

Author

Listed:
  • Ropponen, Olli

Abstract

This report examines the benefits of different types of taxes in relation to their adverse effects, using a modeling framework and the international economic research literature. The basis for the study is literature on the causal effects of different tax types on their respective tax bases. These effects play a central role in determining the welfare losses caused by taxation and are therefore at the core of assessing the adverse effects of taxation. The modeling framework, in turn, makes it possible to incorporate causal effects directly into welfare analysis without the need for information that is less commonly reported in empirical studies, such as so-called compensated effects. The report examines several different types of taxes which, taken together, account for 84 percent of all taxes and tax-like revenues projected for the Finnish central government in 2026. Based on the results, clear differences are observed in the balance between benefits and adverse effects, both across different types of taxes and across different groups of taxpayers.

Suggested Citation

  • Ropponen, Olli, 2026. "The Societal Costs of Taxation – What Do We Know About the Adverse Effects of Finnish Taxes," ETLA Reports 172, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:172
    as

    Download full text from publisher

    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-172.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:report:172. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.