Finns are among the most heavily taxed in Western industrial nations, according to the Taxpayers' Association of Finland.
Finland levies relatively high taxes on high-income earners and families compared to international standards. The Taxpayers' Association of Finland compared the taxation of earned income in 17 Western industrial countries.
Finland's income tax rate for low and medium-income earners was at about the average level. However, high-income earners are heavily taxed and taxation of low-income earners has also risen.
Finland is not the only country with fairly high taxation of earned income. Taxation of all income groups is higher in Belgium, Denmark, and Germany. However, things may change soon, as tax cuts are planned for all three countries.
While Sweden and Finland are planning tax cuts to boost their economies, the Taxpayers' Association says that these plans are still vague and inadequate. As a result, the Association warns that the two countries could remain islands of high taxation as other countries significantly cut back.