Employees in Finland with monthly earnings of 3,000 euros only get to keep roughly 50 euros if they earn 100 euros in subsidiary income in a particular month, says Pasi Sorjonen, the chief economist at Akava. (Maik Gueds – AFP/Lehtikuva)


FINLAND, as a welfare society founded on expertise, must ensure it offers sufficient incentives to support highly skilled employment and economic growth, emphasises the Confederation of Unions for Professional and Managerial Staff in Finland (Akava).

Akava on Monday unveiled its objectives for the upcoming electoral term, calling particularly for lower threshold taxes as the tax progression is targeted too heavily at middle-income earners.

“When did it become acceptable that employees get to keep less than half of their subsidiary earnings?” asked Pasi Sorjonen, the chief economist at Akava. “For example, employees with [monthly] earnings of 3,000 euros get to pocket roughly 50 euros of 100 euros in subsidiary income.”

“Harsh income taxes do not promote the creation of skills-based jobs quickly enough. The taxation of added value created by expertise and know-how is too high,” he declared.

Akava on Monday also urged the next government to take action to raise the employment rate to a minimum of 75 per cent and promote employment-based immigration in 2019–2023.

“We can succeed in the competition for skilled labour if our labour taxes are not substantially harsher than in other countries,” told Sorjonen.

Aleksi Teivainen – HT
Source: Uusi Suomi