Wednesday, September 30

Finland: 'Living in your own house is income' (And Taxable!)

Liberal Americans like to point to Europe as an example of what a great society we can be if only we become brave enough to enact more socialist programs.

One aspect of these societies is a good deal of redistribution of assets. To accomplish this, these Governments need to secure an ever increasing supply of revenue as more people are cared for by the system.

Finland is one of these countries with a well-developed social welfare system. To fund it, Finland has been one of the most taxed societies around. But once you raise taxes so high, you have to come up with new taxes. And not to disappoint, Finland has laid the groundwork by declaring something given as a natural entitlement and turning it into a taxable event.
The group is not expected to propose that all tax deductions be eliminated. For instance, the biggest tax break, the right to live in a home that a person owns him, or herself, is unlikely to be changed.

“Ordinary people do not understand the idea that living in their own home constitutes income of some kind, or that this income might be taxed, Hetemäki concedes. - Helsingin Sanomat
See that? The authorities basically declared that living in your own home is not only considered 'income' but that it is also taxable. I also like the way they introduced it, as an existing tax break (The biggest one!). Very slick.

Of course people don't understand that living in their own home is income because it is total B.S. He made one mistake by defining it as an 'idea'. No matter, this is the direction we are headed in.

Taxation task force wants to cut back on tax deductions - Helsingin Sanomat

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