A cycle of tax increases? Companies would feel the effects
Published
Susanne Päivärinta warns that repeated tax increases could weaken the purchasing power of Finnish households. In her view, this would ultimately affect Finnish companies as well.
Purchasing power refers to how much people can buy with their money. When taxes rise, the disposable income of households usually decreases. In that case, people can buy fewer goods and services.
According to Päivärinta, reduced consumption can also affect the operations of companies. If customers buy less, sales may fall, which can weaken the profitability of companies. This may also be reflected later in employment.
The topic continues to be debated in Finland. According to Päivärinta, it is important for tax policy to take into account the situation of both households and companies.
Sources: Verkkouutiset
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