Tax reform and housing
The study examines the taxation of housing in Finland from the perspective of a period of transition.
The capital income tax reform, property tax, and value added tax have altered the tax position of owner-occupied housing relative to other investment objects. The aim of the study is to describe the taxes levied on housing, to examine theories of taxation, and to calculate the user costs of owner-occupied housing across different income brackets for the years 1984–1994.
The empirical section applies Bourassa and Hendershott’s international comparative method to the Finnish context. The study fills a clear gap, as the effects of tax reforms on the user costs of owner-occupied housing across different income brackets have previously received little research attention in Finland.
Key concepts include, among others, the marginal tax rate, the property tax rate, and the real after-tax financing rate, by means of which the true costs of owner-occupied housing investment at different stages of the tax reforms are assessed. (AI translation)
- ISSN: 1236-7176
- ISBN: 951-9282-76-9
