The Finnish social security system should be based on a basic income of 800 euros a month, according to the Left Alliance.
The opposition party unveiled its proposal for overhauling the social security system in Helsinki on Tuesday, arguing that an 800-euro basic income would largely remove the need for people to supplement the excessively low basic security with social assistance.
“Social assistance would remain a tool to allow low-income earners to receive help in unexpected situations. Also the housing allowance would remain unchanged,” it said.
The Left Alliance stated that the monthly basic income would be “taxed away” from high-income earners by levying a progressive tax on earnings exceeding the basic income in a way that would not result in a substantial increase in the effective tax rate for anyone compared to their current income tax rate.
“Even though the nominal tax rate would increase, the amount of disposable income would not decrease for any low- and middle-income earners,” the proposal reads.
The Left Alliance estimated that the system could be adopted during the electoral term beginning in 2023. The first step towards the system, however, should be taken already during the next electoral term by consolidating a variety of social security benefits – including the basic allowance, study grant, start-up grant, labour market subsidy and child home care allowance – into a basic social security benefit tied to the cost-of-living index.
Aleksi Teivainen – HT
Source: Uusi Suomi