Finnish Government Urged To Focus Tax Cuts On Low Earners

by Ulrika Lomas, for LawAndTax-News.com, Brussels

28 July 2008

The deputy chairman of Finland's opposition Social Democrats (SDP), Pia Viitanen, last Friday suggested that the government should focus its planned income tax cuts on low-to-middle income earners.

According to a report from the STT news agency, Ms Viitanen accused Jyrki Katainen, the country's Finance Minister, and Matti Vanhanen, the Prime Minister, of adopting a judgemental attitude toward critics of their tax policies.

She reportedly observed that:

"This government is beginning to show clear symptoms of arrogance. It does not want to engage in debate over various options and value choices, instead abruptly labelling even nascent attempts to do so as "silly," "envious," "ignorant" or "hollow".

Earlier this month, PM Vanhanen proposed a larger cut in income taxes than originally planned.

However, Vanhanen has shunned down the suggestions from the SDP as well as from the National Coalition that the parties say would help control inflation, including the latter's suggestion that the authorities should use all tax rebates over the next year, rather than spreading them out over a longer period, YLE News revealed.

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