Finns back targeted tax cuts to promote growth

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				Finns back targeted tax cuts to promote growth

The Tax Administration’s logo in Helsinki. LEHTIKUVA

Most Finns support targeted tax reductions to support economic growth, according to new survey results published by the Finnish Business and Policy Forum (EVA).

The EVA spring 2025 values and attitudes survey found broad support for easing inheritance and gift taxes during business succession. A total of 61 percent of respondents viewed this favourably.

Support was also strong for limiting the marginal tax rate on additional income to below 50 percent, with 59 percent in favour.

Fifty-six percent supported tax breaks for companies investing in research and development. Half supported similar incentives for emission-free investments.

General corporate tax cuts were more divisive. The proposal to reduce the corporate tax rate from 20 percent to 15 percent was supported by 37 percent and opposed by 30 percent. A separate proposal to abolish inheritance tax entirely and replace it with higher capital gains tax received support from 42 percent, with 29 percent opposed.

Emmiliina Kujanpää, EVA’s chief tax policy expert, said targeted tax cuts were seen as the most effective tool the government had to stimulate growth.

“Tax reductions are the fastest-acting growth measure available to the government. Because public finances are tight, Finns would direct relief to the areas with the strongest growth potential rather than cut taxes across the board,” she said.

Support for growth measures varied by political affiliation. Voters for governing parties showed greater backing overall. National Coalition Party supporters were most in favour of tax reductions. Finns Party voters did not back tax relief for emission-free investments. Centre Party voters opposed the proposed corporate tax cut to 15 percent.

Among opposition parties, supporters of the Social Democratic Party, Left Alliance, and Green League opposed both the corporate tax cut and the inheritance tax replacement. However, most backed tax incentives for green investments and R&D activity. With the exception of the Left Alliance, many also supported inheritance and gift tax relief in business successions.

Nearly half (48 percent) of Social Democratic supporters favoured reducing the highest marginal tax rates.

In terms of state-led growth initiatives, 55 percent supported government funding for the defence industry.

A proposal to sell state-owned shares and invest the proceeds into growth companies was less popular. Only 21 percent supported the measure, while 38 percent opposed it.

A majority of 51 percent supported simplifying work-based immigration procedures.

The findings are based on responses from 2,070 individuals aged 18 to 79. The survey was conducted between 12 and 24 March 2025 by Taloustutkimus Oy using an online panel. The results carry a margin of error of 2 to 3 percentage points. The sample was weighted to reflect the national population by age, gender, region, education, occupation, sector, and party preference. The statistical analysis and data graphics were produced by Pentti Kiljunen from Yhdyskuntatutkimus Oy.

HT

Source: www.helsinkitimes.fi

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