Verotustehokkuus

Verotustehokkuus is a Finnish term that translates to tax efficiency. It refers to the ability of a tax system to raise revenue with minimal distortion to economic activity and with reasonable administrative costs. A tax system is considered more efficient if it generates the desired amount of government revenue without causing significant negative impacts on incentives to work, save, invest, or consume.

High tax efficiency means that taxes are levied in a way that interferes least with market decisions. For instance, taxes that are easily understood and collected, and that do not create significant deadweight losses (economic losses that are not offset by an increase in government revenue), are generally considered more efficient. Conversely, a tax system that is complex, prone to avoidance, or significantly alters behavior in unintended ways is considered less efficient.

Factors influencing tax efficiency include the design of tax laws, the fairness and transparency of the tax administration, and the overall economic environment. Governments often strive to improve tax efficiency by simplifying tax codes, reducing loopholes, and ensuring that tax burdens are distributed in a way that minimizes economic distortions. The concept is important for policymakers aiming to balance the need for public funding with the goal of fostering economic growth and well-being.