Johannes Koskinen (L) and Ben Zyskowicz (R). Photos: Heikki Saukkomaa / Lehtikuva
- Next Article Finnish minister’s aide under fire for calling welfare recipients “losers”
Two of Finland’s longest-serving MPs have criticised a recent tax break for high-income pensioners, calling it incompatible with the government’s stated economic aims.
Ben Zyskowicz of the National Coalition Party and Johannes Koskinen of the Social Democratic Party said the decision to reduce taxes for the wealthiest retirees should be cancelled or rebalanced.
The tax change, introduced as part of broader income tax reform, lowers marginal tax rates at the top end of the scale.
While this was justified as a way to incentivise work and productivity, both MPs argue that applying the same cuts to pensions lacks logic.
“No one is suggesting pensioners should be encouraged to pursue more demanding careers,” said Zyskowicz, who holds the record for most days served in the Finnish Parliament. He called the outcome “an unintended side effect” of reducing progressive taxation and urged the government to correct it during further legislative work.
The adjustment led to a noticeable tax reduction on the largest pensions. While the government believes this will help drive economic growth, Zyskowicz said the rationale cannot apply to pensioners, who are no longer part of the workforce. He did not endorse specific fixes but noted that raising the so-called “solidarity tax” on high pensions was one possible tool, despite its past unpopularity and legal challenges.
Earlier this year, the European Court of Human Rights upheld Finland’s right to impose a higher tax rate on large pensions, rejecting claims of unlawful discrimination.
Johannes Koskinen, Parliament’s second most experienced MP, echoed Zyskowicz’s view. “There’s clearly no employment incentive here. It’s just a redistribution of income,” he said. He added that the overall model for tax cuts should be revised to be less favourable to the highest earners.
Koskinen also raised concerns about the ethical implications of large pensions and tax migration. “Some of the top pension earners have moved abroad to benefit from lower tax rates. That’s unpatriotic,” he said.
He argued that the pension system was designed to ensure basic security, a goal that is no longer being met when retirement incomes reach corporate executive levels.
“At that point, it’s no longer about securing a livelihood — it’s about locking in income and wealth disparities,” he said.
Koskinen suggested a broader discussion was needed on how pensions accrue in the highest income brackets. He questioned whether the current model — where a €20,000 monthly salary contributes to pension in the same way as a much smaller income — should be adjusted to reduce benefits from the top end.
HT
- Next Article Finnish minister’s aide under fire for calling welfare recipients “losers”
Source: www.helsinkitimes.fi
