Verotusmalliin

Verotusmalliin is a Finnish term used in policy and academic discussions to refer to the act of designing and evaluating tax models. In practice, it denotes the framework used to analyse how changes in tax bases, rates and reliefs would affect revenue, distribution, and behavior.

Etymology and usage: The word derives from verotus (taxation) and malli (model), with the illative suffix -iin meaning toward or into. The phrase appears in Finnish debates on tax reform, where researchers describe the process of translating policy ideas into formal analytical models.

Scope and methods: A verotusmalliin typically includes definitions of the tax base, rate structures, deductions and credits, and administrative considerations. Analysts commonly use microsimulation, dynamic scoring, or computable general equilibrium models to estimate effects on revenue, equity and efficiency under different scenarios.

Purpose and applications: The concept serves as a framework for comparing reform options, illustrating trade-offs between fairness, simplicity, affordability and compliance costs, and for communicating findings to decision-makers and the public.

Limitations and considerations: Model results depend on data quality and assumptions about behavior, macro conditions and enforcement. Critics warn against overreliance on a single model, emphasizing transparent input documentation and sensitivity analyses.

See also: Tax policy, Tax model, Microsimulation, Nordic welfare model.