verorasitukseen

Verorasitus is the Finnish term used to describe the tax burden placed on individuals, households, or the economy by the tax system. It covers all mandatory taxes and contributions, including income tax, social security contributions, value-added tax, excise duties, property taxes, and other levies. The concept is used in public finance to assess how heavy taxes are relative to income or consumption and how taxation affects incentives and living standards.

Measuring verorasitus typically involves metrics such as the effective tax rate (the share of gross income paid in taxes), the tax wedge (the gap between pretax and net take-home pay for workers), and the tax burden as a share of GDP. For households, analyses often examine disposable income after taxes and transfers, with distributional effects looked at across income deciles or need groups.

Distributional aspects are central: the burden is not borne equally. Progressive income taxes and targeted allowances can lessen the burden on lower-income households, while indirect taxes like VAT may disproportionately affect those with lower consumption shares of income. Transfers and benefits can offset these effects, altering the net burden.

Policy relevance and comparisons: verorasitukseen is a key lens in evaluating tax reforms, such as changing rates, broadening bases, or adjusting transfers. Cross-country comparisons use harmonized indicators but face methodological differences in what taxes are included and how transfers are counted. Limitations include tax evasion, regional variation, and the complexity of modern tax systems, which can blur the exact distributional impact.