The Kalevi Sorsa Foundation started a project on taxation policy with the Labour Institute for Economic Research in the fall of 2008. Society’s functions are mainly financed through taxation in Finland. Universal social security and extensive and good quality public services require a relatively high level of taxation. Challenges are the ageing population, growing service needs and income inequality. For the financing of welfare state to be sustainable, the fiscal sufficiency, fairness and legitimacy of the tax system are crucial.
The project will define the basic principles of a good tax system and implement them from a social democratic perspective. In defining the basic principles, taxation is regarded as a political choice as well as an economic one. The project aims to develop concrete measures for a comprehensive tax reform. The basis is to gather sufficient tax revenue in a just and, in terms of the economy, efficient manner.
The first phase of the project is meant to analyse taxations broadly as a building block of social justice and the welfare state. The aim is to sketch the outlines of a system that is both legitimate and solidary, while using basic economic principles. In the second phase of the project the aim is to obtain evidence of how the principles defined could be put into practice.
The results of the project will be gathered into a proposal for reforming the tax system in the spring of 2011. The aim is to form a strong and solid foundation for a comprehensive reform of the tax system.
Futher information by
project coordinator Antti Alaja,
+358 40 1952 041 (mobile)