Recent news
Headline: Finns back targeted tax cuts to promote growth
Tax break for top earners and for companies to stimulate growth.
In other words trickle down economics:
By giving tax breaks, the people at top will hire more workers. ??
Why would companies hire more workers if there isn’t increased consumption of good.
Try thinking, why would your local smarket hire more staff ?
A) tax break
B) increased customers
Job Creation Is Not Guaranteed
Rich ppl say lower taxes on businesses spur job creation, but there's little evidence that companies reinvest those savings into hiring or wage increases. Many use the extra funds for stock buybacks, dividends, or executive bonuses instead.
Wealth Doesn't "Trickle Down" Naturally
Wealthy individuals and corporations are more likely to save or invest in assets (like stocks or real estate) rather than spend directly into the economy. That means less money goes to wages, small businesses, or consumption that drives economic growth for the middle and lower classes.
Demand Drives the Economy, Not Supply Alone
Trickle-down economics focuses on the "supply side," assuming that helping producers and investors will boost the economy. But if average people don’t have enough income to spend because they are broke, demand falters—hurting business growth regardless of supply-side incentives.
TLDR: Trickle down economics is stupid and if you try it, you will end up like usa. “The bottom 50% of Americans held just 2.4% of U.S. wealth in 2024,”
by Special_Beefsandwich
12 comments
Everyone knows this
Finland. Do NOT fuck this up.
Just.
Look.
At.
America.
And.
See.
How.
That.
Turns.
Out.
-From an American
There is actually two pretty good arguments to support these two tax breaks.
1. Did you know that finnish high earning professionals do 2 hours less work than their european peers in average? This is partly because of our very high marginal tax. If you earn even 100 000€/ year, your marginal tax is 60%. So every 1000€ you earn from overtime, you get to keep 400€.
2. Finland is very poor in capital. When growing company needs funding, its only option is to seek it from outside of Finland. This lack of capital will drive growing companies out of country.
So to summarize. These tax breaks most likely will not add Tax income, but in longer perspective they will encourage high earning professionals to do more work, and add more capital to local companies and attract foreign investments. More capital and more work from right people will most likely drive future economic growth. Less capital and less work will do the opposite.
This all is in my opinion essential to fix our budjet deficit, and ensure that we can keep our wellfare in current level.
Edit: also note that by definition and in public discussion 100k/year is rich and very high earner in Finland. That is net income of ~5000€/month. If you earn over 100k/year your name will be published in the tax machines and newspapers, and you will be labeled as a “rich” in the eyes of you family and friends. 😀
Edit2: i appreciate if someone could give me a real argument against of increasing capitals and incentives to make high earning workers to work more. Unfortunately these will not be given.
Needs to be a balance, if you tax the top too much then they will move and the country gets nothing.
Well the rich will use it to justify even more job cuts.
Fires 200 employees “well hey man, i just saved the company 8 000 000 € and i deserve a bonus” takes out a 8 000 000 € bonus.
I’m going Tell you as American, if you do this, You wouldn’t be able to go back
Corporate greed will ruin this country.
There’s a reason why high earners work less, no competition. Finland does not attract talent unless there is no one here to do a job. Low skilled jobs, one the other hand? sure. In fact, I bet high earners would love more low skilled immigrants so they can get their restaurant bills lowered and their uber rides cheaper.
We know it’s the Russia backed Perus that are trying to fuck everything up once they realized they’re losing power fast after the last election. Should throw every last one of them over the east border, buch of traitors.
Tax the wealth not the work.
Trickle down economics is not actual a theory, nor are there economists actually supporting it. It was coined by a humorist Will Rogers to critically express lowering taxes for the wealthy during great depression. Later also used to critizise Reaganomics.
Just wanted to point this out because it can lessen the message you are trying to say.
I always love how people use S-market, a consumers’ co-operative enterprise as an example of some big corporation which just wants to maximize shareholder profit 😀
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