Friday, 7 November 2008

Updating benefits

A committee, called the 100-committee, was founded by the Government to scrutinize the updating the social benefits in Finland.

The social benefits, like unemployment benefits and old-age pensions, are suggested to be guaranteed to a fixed minimum level of income which would automatically be paid to you. This would facilitate the lives of people depending on social benefits quite a lot, as you currently have to first to find out about what benefit you eventually might be entitled to, how to and where apply for it. Then apply for it and maybe get it. Some social benefits that today are handled in the municipalities, would according to the suggestions be handled by KELA, The Finnish Social Insurance Institution as they are already in charge of so many of the existing ones.

Now, this is just a suggestion so far, these changes in benefits, some of them expected to take place by the beginning of next year, but still, the parties of the cabinet are still to agree upon it, as some parties at present are said to be very much opposed to any changes at all in social benefits, just out of their political doctrines, not out of reason, it seems to me.

Still, one of my old question remains, where to take the money from?

The Government has promised to ease the taxation by next year, in order to make the money go around, as the more we consume, the more money it generates and boosts up the economy, well, the state getting less tax money, and paying more in social benefits, also from next year on, that adds up to less than zero, at least in my maths.

Anyway, I am happy to not be into politics and having to worry about it.


  1. remember:
    income tax percent x income = tax paid

    so hopefully:

    lower income tax percent ->
    economic growth -> more income ->
    more taxes paid.

  2. yes, of course, the value added tax generates the income for the state!