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Flat-rate income tax in Finland? Everybody wins with the Nyberg model
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Flat-rate income tax in Finland? Everybody wins with the Nyberg model

Finnish Business and Policy Forum, EVA, economist Martti Nyberg presents the first comprehensive and concrete proposal of what Finnish flat-rate income tax could look like. The aim of the Nyberg model is taxation that is simple, fair and encourages economic growth. Although the taxation of wage earners would be eased considerably, the proposal is neutral as regards income tax. This is made possible by a new tax, business tax.[:en]Finnish Business and Policy Forum, EVA, economist Martti Nyberg presents the first comprehensive and concrete proposal of what Finnish flat-rate income tax could look like. The aim of the Nyberg model is taxation that is simple, fair and encourages economic growth. Although the taxation of wage earners would be eased considerably, the proposal is neutral as regards income tax. This is made possible by a new tax, business tax.[:se]Finnish Business and Policy Forum, EVA, economist Martti Nyberg presents the first comprehensive and concrete proposal of what Finnish flat-rate income tax could look like. The aim of the Nyberg model is taxation that is simple, fair and encourages economic growth. Although the taxation of wage earners would be eased considerably, the proposal is neutral as regards income tax. This is made possible by a new tax, business tax.

In the latest EVA REPORT, Nyberg outlines an alternative that is much simpler and more efficient than the present tax system in Finland. His model sets a 29% flat-rate income tax on earned income and business income. This aims at a wider tax base and higher disposable income for wage earners and pensioners.

In the new Nyberg model, everybody would be able to earn €7,000 per year exempt from tax. This means that nearly a half million Finns would not pay any income tax. Taxation of wage earners and pensioners would be reduced by €3 billion. Capital income tax, which distorts the behaviour of both wage earners and companies, would be abolished.

Report also available in English – Download report below. The Finnish version can be downloaded from EVA’s Finnish site.

Attachment: 1662_flat_tax_for_finland.pdf