The Social Democrats (SDP) is finding it difficult to stomach the tax revisions sought by the National Coalition (NCP) in the ongoing government negotiations. The chairperson of the party, Antti Rinne, addressed the SDP parliamentary group on Thursday to report on the progress of the negotiations and to seek a mandate to continue. The NCP has called for adjustments to the taxation of earned income in exchange for the stimulus measures – in essence, additional spending allocations – sought by the SDP.
HS in English
SDP uneasy with tax adjustment
The tax rates imposed on earned income increase automatically as wages rise, whereas the tax table is updated with so-called inflation corrections – a measure to prevent real income tax rates from creeping up.