kokonaisveroiseen

Kokonaisveroiseen refers to a taxation system where the total tax burden is calculated as a percentage of an individual's or a company's total income. This approach contrasts with progressive taxation, where the tax rate increases with the amount of income earned. In a kokonaisveroiseen system, the tax rate remains constant regardless of the income level, making it a flat tax system.

The term "kokonaisveroiseen" is often used in the context of Finnish taxation, where it is the primary method of taxation for individuals and companies. The system aims to simplify the tax code and reduce the administrative burden on both taxpayers and tax authorities. The total tax burden is determined by a single tax rate, which is applied to the entire income of the taxpayer.

One of the key advantages of the kokonaisveroiseen system is its simplicity and transparency. Taxpayers can easily calculate their tax liability by applying the flat tax rate to their total income. This simplicity can also make the system more appealing to businesses, as it reduces the complexity of tax planning and compliance.

However, the kokonaisveroiseen system may not be as efficient in redistributing wealth as progressive taxation. Since the tax rate does not increase with income, lower-income individuals may bear a larger proportion of their income in taxes compared to higher-income individuals. This could potentially lead to a less equitable distribution of the tax burden.

In summary, kokonaisveroiseen is a flat tax system where the total tax burden is calculated as a percentage of an individual's or a company's total income. It is characterized by its simplicity and transparency, but it may not be as efficient in redistributing wealth as progressive taxation. The system is widely used in Finland and aims to reduce the administrative burden on taxpayers and tax authorities.