Finland’s rich (some of them) ready to pay more taxes
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Nicklas Herlin
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Jari Sarasvuo
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Rafaela Seppälä
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By Pete Pokkinen
The wealthy in a number of countries have recently announced their willingness to pay higher tax rates as a way of easing the current financial crisis.
Billionaires in France and the United States, at least, have said that they would be open to a higher tax rate.
The idea of pitching in to fight the recession has received some support from wealthy Finns as well.
“Among the wealthy there is a good sense of responsibility. Many of my friends and I would be ready to pay more in taxes”, says Jari Sarasvuo, founder of the consultancy firm Trainer’s House.
Next year the state is raising its taxation of rental and dividend income to 30 per cent. In addition, capital gains of more than EUR 50,000 a year will incur a 32 per cent tax.
At least some of Finland’s rich feel that their taxes could be raised even more.
“The tax on capital gains income is rising, but there is room for an even greater increase – at least for bad times. I wouldn’t touch taxes on earned income”, says Ari Rinta-Jouppi, CEO of Rinta-Jouppi car dealerships.
Publisher Niklas Herlin also favours steeper progression in the taxation of dividend incomes.
“The pay and benefits of super-executives are at a fairly high level. There is room for increases.”
Wealth and taxation is still a sensitive subject for the rich.
For this article, Helsingin Sanomat tried to reach a number of Finns ranking at the top of the taxation figures.
Most of them could not be reached, or did not want to take part in the discussion.
One of Finland’s richest people, Rafaela Seppälä, an owner of the Sanoma Group, which publishes Helsingin Sanomat, understands the reticence.
“Many of my wealthy acquaintances help Finns in ways other than paying taxes. However, Finland is not the United States, which means that people keep this to themselves”, she says.
Seppälä says that taxation is not a black-and-white issue.
“Many want to help through foundations and scholarships, for instance. That creates more employment and tax revenue. For instance, I employ dozens of people through my own activities.”
Sarasvuo also feels that in return for higher taxes on the rich, certain reforms should be implemented.
“And naturally I would hope that the rich would not always be blamed, because it is among them that there is willingness and ability to help.”
“In addition, the help should be one-off, or it should apply to a limited time, as an invitation to bearing responsibility.”
Sarasvuo sets a severe condition for the Finnish state.
“If help is asked for, it should be used to fixing the public economy and spending. We cannot shift such a heavy moral load on the coming generations.”
In France, when 16 of the country’s wealthy issued an appeal for more taxes, the state almost immediately announced that the taxation of the wealthy, and those with high incomes, would be increased by three percentage points.
The taxation of the rich is quite moderate in France. According to the newspaper Le Monde, the richest one one-thousandth of the population pay an average 20.5 per cent in taxes.
In the United States Warren Buffet has an income tax rate of just 17 per cent.
By comparison, Finnish taxation is relatively higher.
However, Matti tuomala, Professor of Economics at the University of Tampere, sees room for improvement.
“I would prefer to address the tax-free status of dividend income of less than 60,000 euros that applies to unlisted companies. It is unfair when taxes are not levied where there is ability to pay”, Tuomala says.
Helsingin Sanomat / First published in print 27.8.2011
PETE POKKINEN / Helsingin Sanomat
pete.pokkinen@hs.fi
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| 30.8.2011 - THIS WEEK |
 Finland’s rich (some of them) ready to pay more taxes |
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