Serving the Top Earners – A Study on the Effects of the Government’s Income Tax Cuts on Different Income Groups and Regions

Abstract

In April 2025, Prime Minister Petteri Orpo’s government decided, among other reforms, to cut the marginal tax rate that applies only to the wealthiest two percent of Finns. The published study, based on tax authority statistics and the SISU microsimulation model, examines how the tax cuts are distributed across income groups. The findings show that the benefits are concentrated at the very top, particularly among the richest one percent. The study also questions the government’s claim that the reform will boost growth and pay for itself: existing research provides no clear evidence that tax cuts for top earners increase economic growth, whereas their effect on inequality is evident.

Publication Information

Finér, L. & Systä, J. (2025), Huipputuloisten asialla – Selvitys hallituksen tuloveronalennusten vaikutuksista eri tulonsaajaryhmiin ja alueisiin, Kalevi Sorsa -säätiö, Impulsseja 2/2025.

• ISSN: 2984-2042 (Print), 2984-2050 (Online)
• ISBN: 978-952-7586-16-7 (Print), 978-952-7586-17-4 (Online)