Kauppalehti participates in a debate on household deduction, which has been triggered by a recent study by the State Economic Research Center and the Wage and Salary Research Institute.
“The conclusion of the study was that household reduction does not increase employment or eradicate the gray economy. However, people’s everyday experience is different. ”
“There are a lot of problems with research setups. The periods under review date back to the financial crisis, when there was a lot of uncertainty in the economy. ”
“Research is also plagued by non-history. In Finland, the review does not extend to the introduction of the household deduction until 2001. In the long run, the change in demand and use of services would probably have been more clearly visible. ”
“According to the study, high-income people, who use the reduction more than low-income people, benefit from the household deduction. It is an understandable result in the sense that the well-off also pay more taxes. It may also be a symptom of another problem, the sharp progressive marginal taxation that taxpayers are trying to alleviate through the deduction. ”
“It is clear that the respondents do not want to admit that they themselves used the gray market.”
“The problem with the study is that it draws far-reaching conclusions based on fairly narrow data. If the research provides additional information, it must of course be used in decision-making. ”
Ilkka-Pohjalainen says the study has caused confusion.
“The experience of the practice says something completely different than the extensive comparison of research institutes between Sweden and Finland shows.”
“The popularity of the household deduction that came into effect in 2001 has been growing all the time. … Most of the support is used for various renovations of the home, but the use of cleaning services has also increased significantly as a result of household reductions. ‘
“The work of the research institutes was halfway through, as they did not explain the everyday benefits of the reduction, such as the importance of cleaning services for the coping of families with children or the well-being of the elderly.”
“The lowest income earners don’t benefit from the household deduction because they don’t pay tax. Excluded from the reduction are most often elderly people living alone, who would specifically need services to be able to live on their own for as long as possible. In order for the household reduction to be targeted as evenly as possible, it needs to be clarified and facilitated. “
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source https://pledgetimes.com/other-magazines-a-new-study-on-the-effects-of-household-deduction-does-not-match-everyday-experience/
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