Haven’t posted anything in forever, apologies to all of you (and YOU’RE WELCOME to others ). I just received my portion of George Bush’s $145 billion economic stimulus package…well, $300 of it. I’m rich bitch! HONK!!! I think I’ll buy a big bag of crack, that’ll help the U.S. economy! Or maybe I’ll spend that $300 here in Finland, that’ll help the U.S. economy equally.

So you think the government is retarded for giving out billions while racking up trillions in debt, right? How could they make it even more retarded? By spelling “Espoo” with a ‘5′, check it out below…

LOL!!! I’ll be “laughing all the way to the bank” when I cash this thing. I’d like to think George Bush himself wrote that check. Reminds me of Mr. Burns’ illegitimate son spelled “Yale” with a ‘6′ in his Yale application. Too fucking funny, man.

Finland has no mandated “minimum salary”. Someone asking that question will get the question back - “what will you be doing?” as the minimum salary in each job is more or less mandated by the comprehensive union agreements that differ a bit if you’re working in the public or private sector and also between industries (A lot of strikes recently have been about a job being outsourced and the new company having a different union agreement, cooks of bank cafeterias and cleaners at the paper factory come to mind). So everyone gets “union wages” in Finland.

But what are the wages then like? Taloussanomat did a survey on the average wages in Finland according to the average salary statistics by job classification and by gender, and compared the lowest rung of the ladder to the higher within the same profession. (The categories are by the Finnish Statistics Centre). Now it is said that the “wage differences in Finland are not that big”. Lets rephrase that, about as like the “cars are the cheapest in Finland” it makes everybody laugh as you need to remember the taxes on top. So the wage differences of the bring-home-pay are not as big in Finland - due to the progressive income taxation.

So who has the suckiest average salary doing a regular 9-5 workday your 38-40 hours a week? (Military not included.) A fraction under the 1600 euro limit would be for women a “farmhand” and for men a “laundry worker”. Thats about the lowest you can get… even a “cleaner” gets in the ballpark of 1700 euros average. But does education help? Do specialists get more salary? Do managers? That again depends on your profession. The lower rung of the specialist ladder is again farm work, a seminologist is in the 1700 euro ballpark. And if you get into mismanagement, the worst salaries are in the hotel- and tourism business.

Now as we’re talking of average salaries the survey also looks into the highest salaries. A stock and currency exchange banker or then your chief surgeon might get into the 5000 -6000 euro category, but thats the top end of the average “rich guys” salary. So what is the salary difference like? According to the nifty tax calculator provided by VERO ( just ballpark figures counted with 13 mo salary ):

1600e/month your income tax% is 16,5, take home pay ~ 1336 euros a month
6000e/month your income tax% is 36,5, take home pay ~ 3827 euros a month

So before taxes the income is 3,75 times, after taxes only 2,8… yay, socialism! BTW the SDP party secretary makes 6900 euros a month… yay socialism!

Growing up in Finland I heard a lot from the politicians “its a lottery win to be born in Finland”. When I had grown up I realized “you require a lottery win to be able to live in Finland”.

Things are expensive in Finland - maybe not that expensive in comparison with the other Nordic countries with a similar taxation and geographical structure, but expensive to the average consumer as the purchase power in Finland is low. The Finnish financial magazine Taloussanomat wrote about the purchase power in Finland earlier this month. According to the article , “Finns are paying themselves sick” for goods and services. Lack of competition is given as one of the a reasons why for example groceries in Finland cost one fifth more than the EU average. Finland has been quite notorious for keeping foreign competition out, and now that there are no more barriers it seems nobody is really interested in coming over as the volumes aren’t there. So Finland remains a keskolandia.

Now being somewhere at the EU average is one thing, but starting to compare things globally doesn’t make the prices look any better. When Phil goes to buy a chicken in Finland, his cousin in the USA can buy four chickens with the same price! The Iltalehti had a comparison of prices for groceries in Helsinki, Stockholm, London and New York, and it seems in the UK and USA (and London and New York are expensive cities), you can get by with about half of what you pay in Stockholm or Helsinki. Of course one explanation is the sheer volumes that bring the prices down, but it still is peculiar while milk or potatoes cost approximately the same, in some products, like meat, the price differences can be quadrupled.

With the global food shortage being blamed on the biofuels is causing food prices to go up, it still doesn’t quite explain why in Finland you need to pay your ass off just to buy your basic stuff. Then again if Norwegians come to buy “cheap booze” from Finland, we can say theres a place where things are worse. Or are they - the purchase power in Norway is higher than in Finland . Your avarage consumer is faced with the problem of rising prices and already now the shopping habits of people are changing. Maybe next year this time I’ll be sharing a potato and brown sauce recipe.

One small piece of news in the Iltalehti today struck me as a reminder of a past era. I guess it was the so-called “IT boom” in the late 1990’s in Finland that drew me along, so much I decided to change careers. Of course those guys who were in the forefront starting it went much higher up catching the stars - but they also burned in re-entry. According to the IL Jaakko Rytsölä was sentenced for more or less for “deliberately misallocating money from his debtors - read: tax office” to a year and six months in jail (probational) and 50 hours of community service.

Now you might ask “who”, but the Rytsölä brothers, Antti and Jaakko especially were branded as the icons of the new success story Finland was launching in the late 1990’s. Two brothers from a regular family had started from scratch in 1995 establishing DLC, one of the first ISP’s. Jaakko had started his own IT business when he was 16 selling computer parts, and when his little brother Antti joined him in Helsinki, he was selling hotdogs at the Helsinki Railway station to make the ends meet while the ISP business was in its fledgling state. A few mergers later the Saunalahti was formed and the young men in their twenties were all of a sudden millionaires, remembering that in 1992 the whole country had been more or less bankrupt. Of course the press hounded the new IT millionaires - after all a Lamborghini Diablo as a “company car”? The two young men were favorites in the tabloid headlines. Finnish envy nonwithstanding the flamboyant lifestyle annoyed some, so the police found a red Ferrari in Helsinki traffic a red flag and Jaakko Rytsölä was fined a whopping 100 000 euros for speeding in his Ferrari (oh, he had about seven cars at one time).

The laws of physics say what goes up must come down, unless the escape velocity is fast enough. A Lamborghini is too slow in Finland. When the “IT-boom” as the “dot.com bubble” was called in Finland turned into the bubble that burst, Jaakko Rytsölä lost overnight a record 6 million euros of his calculated wealth of 10 million in the autumn of 2001 when the Jippii group stock crashed 90%. By the spring of 2002 the tax office had filed him bankrupt, but the tax office was still after money, and the result of the trials that followed was handed out today. Jaakko Rytsölä has claimed innocence and stated that the money wasn’t hidden anywhere but was invested and thus was lost in the stock crashes.

The boom/bubble era had a lot of similar from rags-to riches-to rags stories. Many of the people were young and maybe perhaps been hearing from their parents the “no money” saga growing up so once money was coming from the doors and windows the “crazy years” of the 1980’s came back overnight. It was an era to seize the moment - but there were other people running away with the money. As the dot.com bubble burst in the USA, the flash downed several Finnish companies who had gone venturing to Europe such as Jippii and Sonera which lost huge investments in Germany. And the aftermath was bankrupcy trials, insider trading suits… USA had Enron but we had our own scandals we remember the 2000’s for.

Comparing to the “crazy years” of the 1980’s the dot.com bubble years in the 1990’s could be called “riot years”. If you haven’t seen it before, try to find the documentary Riot On!, its about a small Finnish gaming company Riot-E which got 20 million dollars of venture capital… and ” where the f*ck did it all go?”.

But at the end of the day - regardless of how far the frontier is - the tax office is the last man standing.

The Helsingin Sanomat has written about some British & Irish paving labourers who apparently have not had “trouble finding work without speaking any Finnish”. So that proves false the assumption Finns are discriminating xenophobes and racists. Doing a paving job for 3500, sans receipt, when the Finnish quote is 8500-10K and the material cost alone is between 2-3K though might have something to do with the equation. Also the claim that Finnish officials are xenophobes and racists is proven wrong, as if a local Finnish resident would be driving drunk, stealing and doing black labor without paying the social fees and VAT; they’d be in serious trouble. But EU citizens are free to do whatever they effin please. So apparently there is a “need for workers” in Finland indeed and the EU has once again proven to be the source of multiculturalism that enriches the nation. Again three basic theses regarding immigrants in Finland have been proven wrong. I find this quite hilarious, though there’s an owner of a campsite full of complaining Finns (as opposed to whining foreigners) that might not think I am so funny.

Cliff notes: Snatch in Järvenpää

It’s time for my fourth annual summer board game auction, yay!! This time I’ve teamed up with my neighbor and close friend, Saku S., to bring you even MORE great games - here’s how it works…

Below are the starting prices. Simply leave a comment below with your bids. Each bid must be 1 euro higher than the previous. Please include both your name and e-mail address. (if your message doesn’t immediately appear, it may have got caught in my spam guard - I’ll check my spam throughout the day so just wait a few hours and it will show)

I will update this page daily with the highest bids - however, when placing a bid, search through the comments to be sure you are the highest bidder.

I’ll be at Ropecon 2008, so I can bring the games there. If you won’t be at Ropecon, I can meet you in Espoo, or send the games in the Post (at your expense). I’ll accept bank transfer or cash.

The auction begins now (July 30th) and ends on Friday, August 8th at 12:00.

Good luck! E-mail me with any questions: phil >>at>> finlandforthought . net

Latest update on the bids: Friday, August 8th at 15:00, Winners updated

	Age of Napoleon / Das Zeitalter Napoleons, Phalanx	5 EUR, Kalle Miller WINNER: 10 EUR, Valtteri Pirttilä	German version with printed English rules. Unplayed.
	Heart of Africa / Ins Innere Afrika, Phalanx	WINNER: 5 EUR, Mika	German version with scanned printed English rules. Unplayed.
	Elasund: The First City of Catan, Kosmos	5 EUR 6 EUR, raaf WINNER: 7 EUR, Mirko	German version with printed English rules. Played maybe two times.
	Quarto!, Gigamic	5 EUR	Good condition.
	Marco Polo Expedition, Rio Grande	WINNER: 5 EUR, barber	English version. Good condition.
	New England, Goldsieber	5 EUR, Timo Malvisalo6 EUR, Hessu 9 EUR, Timo Malvisalo WINNER: 10 EUR, Hessu	Played condition.
	Scene it!, Screenlife LLC	10 EUR	First Edition (2003). Played condition.
	Space Dealer, Eggert Spiele	10 EUR 15 EUR, Kalle Miller WINNER: 18 EUR, Valtteri Pirttilä	German version with printed English rules. Good condition.
	Die Weinhändler, Amigo	2 EUR, Mosse 3 EUR, JoeLamer 5 EUR, Mosse WINNER: 6 EUR, metsku	German version with printed English rules. Good condition.
	Taru Sormusten Herrasta/Lord of the Rings, Tactic	5 EUR, Timo Malvisalo 7 EUR, Timo Malvisalo WINNER: 12 EUR,  Mirko	Finnish version. Unplayed.
	Combat Commander: Volume II - Mediterranean, GMT Games	15 EUR WINNER: 30 EUR, Vesa	In shrink. Unopened.
	Age of Empires III: The Age of Discovery , Tropical Games	15 EUR 21 EUR, Patrik Lervik WINNER: 33 EUR, Tombad	With the components for extra player shipped with pre-order, box a bit caved in during shipment.
	4 x card games package	WINNER: 2 EUR, JoeLamer	Lao Pengh, Up & Down and Turbo from Adlung Spiele (all with English rules) + Herzlos from Winning Moves (German with no English rules)
	Amyitis, Ystari	5 EUR12 EUR, Mosse 13 EUR, Opettaja H. WINNER: 15 EUR, raaf	Played   3 times, like new. German edition with English rules.
	Augusburg 1520, Alea	5 EUR, Ossessione 9 EUR, Mirko WINNER: 15 EUR,  Mirko	Played 4 times, like new. German edition with English rules.
	Before the Wind, Mayfair	3 EUR WINNER: 9 EUR, Ossessione	Played once, like new. English edition.
	Blue Moon City, Kosmos	5 EUR 10 EUR, oskari 12 EUR, raaf WINNER: 13 EUR, Mika	Played several times, like new. German edition with English rules.
	Chicago Poker, Phalanx	WINNER: 3 EUR, barber	Played several times, like new. English edition.
	Darjleeing, Abacus	5 EUR 8 EUR, Jhua 9 EUR, metsku WINNER: 10 EUR, Jhua	Played once, like new. English edition.
	Double or Nothing, Uberplay (Reiner Knizia)	5 EUR	Played several times, like new. English edition.
	Evergreen, Goldseiber (Wolfgang Kramer)	WINNER: 2 EUR, Cane	Played once, like new. German edition with English rules.
	Great Wall of China, Kosmos (Reiner Knizia)	3 EUR WINNER: 5 EUR, Timo Tikkanen	Played several times, like new. German edition with English rules.
	Limits, Amigo (Uwe Rosenberg)	2 EUR, JoeLamer WINNER: 3 EUR, Cane	Played once, like new. German edition with English rules.
	Lucky Loop, Queen	3 EUR	Played twice, like new. German edition with English rules.
	Rage, Fundex	2 EUR, barber WINNER: 3 EUR, Cane	Played once, like new. English edition.
	Saludos Amigos!, Goldseiber	5 EUR	Played once, like new. German edition with English rules.
	Sleuth, Face-2-Face (Sid Sackson)	5 EUR WINNER: 10 EUR, Timo Tikkanen	Played once, like new. English edition.
	Walhalla, Amigo	5 EUR, Timo Malvisalo 6 EUR, Hessu 9 EUR, Timo Malvisalo WINNER: 10 EUR, Hessu	Played several times, like new. German edition with English rules.
	Ziegen Kriegen, Amigo	2 EUR, JoeLamer 3 EUR, metsku WINNER: 5 EUR, Cane	Played once, like new. German edition with English rules.
	Shogun, Queen (Dirk Henn)	10 EUR 25 EUR, Mosse 31 EUR, Mirko WINNER: 40 EUR, Jhua	Played once, like new. German edition with English rules.
	Thurn & Taxis: All Roads Lead to Rome, Rio Grande Games (Andreas Seyfarth)	5 EUR 6 EUR, JoeLamer 7 EUR, Hessu 9 EUR, Hessu WINNER: 11 EUR, Hessu	Played once, like new. English edition.
	Buccaneer, Queen (Stefan Dorra)	5 EUR, Hessu 7 EUR, Hessu WINNER: 13 EUR, Eikku	Played several times, like new. English edition.
	Imperial, Eggert-Spiele	10 EUR 30 EUR,  Timo Tikkanen WINNER: 31 EUR, pillar	Played   once, like new.  English edition.
	Canal Mania, Ragnar Brothers	10 EUR 11 EUR,  Niko WINNER: 12 EUR, Hessu	Played   once, like new.  English edition. Signed by the designers!
	Eketorp, Queen (Dirk Henn)	10 EUR 11 EUR, Akseli Pulkkinen 16 EUR, Hessu 20 EUR, Akseli Pulkkinen WINNER: 22 EUR, Akseli Pulkkinen	Played once, like new. German edition with English rules

Evidently Sirkuspelle’s efforts are finally showing some fruits. From the STT

Publishing individuals’ tax records in the media may in future be completely banned, provincial daily Keskisuomalainen reported on Wednesday. The paper added that the Supreme Administrative Court (KHO) had asked the the European Court of Justice (ECJ) for a precedent on the issue. The ECJ will hold a discussion on the topic 12 February and the KHO would make its decision based on this precedent. The issue came to the forefront when Veropörssi, a Satakunta-based company that publishes tax information, listed over a million individuals’ tax records and then sold them to directory services firm Fonecta, which in turn sold the information on to customers via text message. According to Keskisuomalainen, Reijo Aarnio, Finland’s data protection ombudsman, took the issue to court as a breach of journalistic integrity.

The Age of Wonders is here.

I’ve been fortunate enough to get a couple generous raises over the past two years and my girlfriend has graduated from school and is working full time, so our household has seen a healthy increase in income. And as I become wealthier, I find myself moving further and further to the left politically. I’d like to say with age and wisdom comes leftism, or maybe five years in the welfare state has brought me closer to the left - but it’s all about the Benjamin$…

Beginning today, the Finnish state has banned discounts on alcohol, significantly increasing the price of 12-packs of beer. And I love beer! So I should be upset, right? But I’m not. I make a decent salary, I can afford it. Now a few years ago I’d be furious, my love of beer remained the same but I was much poorer, so this leftist move would have hurt me much harder.

During the current U.S. Presidential campaign, socialized healthcare is an important issue to me, I support the left when I say I want every American to have free healthcare - Because I know if I ever return to the states, my employer will fund my private healthcare. Now if I were a poorer man, there’s no way in hell I’d want something as important as my personal health in the hands of some idiot like George W. Bush!

I supported the Nurse’s raise even though taxes will increase even further, cause I got $$. I’m a much bigger environmentalist now that I have more money to afford the higher costs it requires. Go ahead and make the leftist move of raising the prices on such basic necessities as fuel, electricity, bus fare, food, and drink - I live, work, and shop in Espoo, I never have to see the negative effects of poverty in Finland.

You know how much political debate goes on in the lunch rooms and water coolers of my employer? None! We all got $$, these little Mickey Mouse moves by the Finnish politicians hardly affect us. Doubling the price of beer really hurts a poor Finns’ wallet, but does little damage to ours. So why not support the left? It’s much more cool and hip than the right. And that’s what I’m really missing as I get older and wealthier…coolness.

Pictured right, the wise and majestic President of Finland, Ms. Tarja Halonen.

Happy New Year!! And best wishes from Finnish politicians who’ve rang in the New Year with higher taxes and stricter regulations…

- Taxation will pump up the price of gasoline by 5 cents a litre, and diesel by 5 and a half cents. On average, motorists can expect to spend up to 60 euros more on fuel.

- The price of bus tickets is also expected to rise by 5.2 percent, while long-distance train tickets will cost on average 2.9 percent more.

- Sending snail mail will also a bit cost more in the new year. Mailing a package will cost 7 percent more, unless it weighs less than 50 grams

- Prime or base interest rates will rise to 4.75 percent, up from the 4.25 percent level of the last six months.

- Television commercials for alcoholic beverages are now banned from television screens between 7.00 am and 8.00 pm, and are forbidden in cinemas during movies for patrons under the age of 18.

Gee, thanks politicians! And here’s the real kicker, no more discounts on alcohol, a 12-pack will cost the same as if you’re buying 12 individual beers. This means I’ll be buying more imports instead of saving money on shitty Finnish beer…

- Bulk discounts on multiple packs of alcoholic beverages are a thing of the past. The practice of outdoor advertising of other discounted alcoholic drinks such as cheaper drinks offered during a “happy hour” is also against the law.

And what is quite ironic - cold, dreary, suicidal Finland is banning “Happy Hour”. Finnish politicians have taken away a restaurant/pub’s freedom to lower prices of their products in order to compete. We had a couple happy hours per day from 4 to 6, but now it’s unhappiness in Finland 24/7.

Let’s see - the leftist Social Democrats liberalized alcohol under their administration and the right-wing Kokoomus have tightened regulations. I’m definitely a lefty.

I found a very intersting article on the World Bank’s website that was written by the Korea Institute of Public Finance.

One of the big subjects that has been talked about here in Finland is the underground economy or “harmaa talous”. One of the arguments used for having public tax records (”transparency”) is to reduce the amount of the underground economy. There was a even a huge attempt at a crackdown on the underground economy in the mid to late 1990’s, in an attempt to bring the level down. Lately, there hasn’t been much talk about it due to other, more pressing news.

What is the underground economy?

It is the unreported exchange of money. This can happen through illegal activites, such as drug trafficking, prostitution, and human trafficking, or it can happen through legal activities, such as bartering goods, unreported work, wages from self employment, employee discounts, payment without a receipt, etc.

In Norway, according to the government tax authority’s web site, 45% of people over 18 years old have purchased unreported labour. It was described as “underground economy” labour. There are probably similar levels in Sweden and Finland as well.

Why is it a problem ?

People may go underground to escape tax and social security burdens. As a result, this can weaken the tax and social security bases. As a result of this, there can be an increase in the budget deficit and tax rates. As a result of this, there can be further growth in the underground economy, and finally there is a weakening in the system, or the country, as a whole.

Growth of the underground economy

The article showed that there was, among all the European countries featured, the most dramatic growth of underground economic activity in the Scandinavian countries between the years 1960-1995. (Denmark, Norway, Sweden) Finland wasn’t included in the paper, but we can assume that Finland has very similar scores. The growth in Scandinavia was much higher than that in Germany, Austria, Switzerland and the US. Norway had the most dramatic increase of all the European and Western countries featured in the article.

Causes of Underground Economy

• Higher tax rates and social security contributions
• Increased regulation
• Forced reduction of weekly working hours
• Earlier retirement
• Unemployment
• Decline of civic virtue and loyalty towards public institutions

I take the liberty to define another cause here, because I believe it is a factor. These countries that have had the highest increase in underground economic activity also have or have had public (published) tax records. The published information is name, salary, capital income, and municipality in the case of Finland, and until recently included wealth. In Finland’s case, the information has been published in tax calendars, newspapers, and other publications which sole purpose is to publish this information. In Sweden in recent years, quite detailed information could be looked up online, but anonymous lookups were stopped during this past Summer. Norway has had press heydays when it has opened its records up for 3 weeks a year. In all these countries, it is toted as some sort of noble democratic ideal and called “transparency”, but it ends up basically being a feeding frenzy for the press and tabloid type entertainment.

There seems to be a psychological factor, a desire of people to take what is their own, that is the money they have worked hard for, and put it in a safe place away from prying eyes. When even peoples’ wealth is published, it should come as no surprise when the government finds that there are billions in Finnish money in the Cayman Islands and other tax paradises where the governments don’t reveal the identity of the owner of the money.

I might also add “fear of the tax official” in the case of Scandinavia, and wanting to avoid dealings with the tax collector because of an unclear definition of one’s rights and responsibilities as a taxpayer. There is an expression “the tax collector is always right” in Finnish. “Verottaja on aina oikeassa.” Noone is comfortable dealing with a boss, for example, who is “always right”.

Methods of Estimating the Size of the Underground Economy

A number of different approaches were used to estimate the size of the underground economy. There were indirect approaches like taking surveys, looking at discrepancies between the national expenditure and income statistics, discrepancies between the official and actual labour force, currency demand approach and physical input. The currency demand approach looks at the demand for cash currency which points to underground payments, because cash is often used with underground payment. The physical input looks at the demand for electricity, since electrical consumption goes hand in hand with economic development. If a country is using more electricity than is accounted for in its GDP, then the rest can be suspected as being used for the underground economy. (read the article)

Most studies try to associate the tax burden with the underground economy, which certainly must be a factor in the case of Scandinavia, due to the high taxes. However, the tax burden in Scandinavia is pretty similar with that in other EU countries, such as France, Belgium, Germany, Italy, etc. But one differing factor is certainly the pubicizing of peoples’ tax and income records from the tax officials. I maintain that this causes people to want to hide their money and their money transactions away from prying eyes.

The conclusion: The use public tax records to reduce the underground economy in Scandinavia has failed quite quite miserably. Or then, I might add, it was always just an excuse used by people who are addicted to “peeping” at other peoples’ private economic affairs and is perhaps the actual cause of this dramatic, disproportional increase in the underground economy in this region.

Lowering the quality of the blog with another tax-related posting.

Now not necessarily due solely to the TEHY deal(*), but to the general level of salary raises negotiated, the Kuntaliitto (Association of Finnish Counties) reports that 119 counties of the 416 will raise their municipal tax percentage effecting about one million people, and only three counties on Ã…land lower it for 2008.

(* Meanwhile there has ensued an amazing amount of bickering of who actually will get what and how much over the TEHY deal.)

The majority of the counties raising their tax percentage, the highest being 21% as opposed to the median of 19% are already small counties with already poorer economies. (For comparison, Helsinki and Espoo have 17,5% Vantaa 18,5% and Kauniainen “where the rich live” the lowest in the country at 16% ). The other change for 2008 will be the difference in the “cost of living rating” between counties will be abolished, so there will no longer be I and II rate counties. The rates have affected salaries and benefits, as the II-rate counties have been regarded with cheaper living expenses reflecting lower salaries and benefits. Thus, Finland will become an equally expensive country.

The municipal tax percentage effects directly the income taxation of a wage earner. Other taxes the counties levy are property taxes, which in Finland are low, and some cities have been lowering them so their net effect will be lower.

The total budget of the counties in 2008 will be 17,8 milliard (=american billion) euros, of which the “municipal tax” effecting directly the personal income taxation comprises of 14,9 mrd €, the property taxes a meager 0,9 mrd € and the rest 1,6 mrd € comprised of their share of the “corporate tax”, which is a flat rate of 26% divided by the state, the counties and by parishes. (Oh yes, corporate entities pay “church tax”). More information on life, death and taxes can be found at www.vero.fi

Meanwhile, for comparison: in Sweden the municipal taxes run at 30-33%, Iceland  11.24%-13.03%, in Denmark the average is 33% and Norway  the municipalities don’t have individual percentages. However in all the Nordic countries you get hit by progressive income tax, wealth tax, property tax, church tax and whatnot even more vigorously than in Finland it seems.

So sorry for bringing forward another quality-lacking tax issue. It is however something that touches everyone living here in the welfare state, municipal services depend on the county budget. If you have broken streetlights you can see for yourself - or rather stumble in the dark - over what it means for the county to be lacking the funds.

 

Veropörssi, a list of names and incomes in newspaper format for 9,80. Sorry about the poor quality picture. It was taken yesterday.

Pornography is something that is normally very taboo to look at or talk about in normal everyday society, like at work, for example. There are some people who sell and publish it in order to make money. There are enough people who are excited about it and addicted to it to make it a very big industry. It makes a lot of money for those selling it and it entertains those consuming it - there is really no other use for it. It is actually considered by some to be quite dangerous and the industry has a reputation for being quite “dirty”. Acquiring pornographic material is often done in a coercive manner, that is against the wishes of the subject of the pornography. Often, it is very damaging to the subject. Images of people exposing their reproductive organs, and performing sexual acts is something that belongs in the arena of private life, most agree. It is not information that should be sold or published, at least not without consent.

In Finland, material that is very taboo to bring up in everyday Finnish society is nicely packaged up, sold to the press for money, published or released. It excites many people and many are very addicted to it. It is also damaging to many people and puts some into danger. It is done without the permission of the subject. It is there purely to make money for those publishing it and to entertain those buying it and has no other real use. And, in this case, this industry is run and sanctioned by the government. It is called “public tax records” or “julkiset verotiedot” - in other words, lists of people’s names, salaries, captital incomes, and municipalities where they live. This is an industry that is quite comparable to the pornography industry. And many feel violated by it.

Is there anything that can be done about it? Yes, for certain. If you feel like your own rights are violated in any way by this, it is important to file a complaint to the European Commission. Let them know that you feel your rights are violated - that is what they are there for. Let a parlaiment member know as well. You don’t need to quote any laws, they are aware of this issue here in Finland already. Complaints to the EC will actually help the Finnish government establish a solid foundation for new legislation, a foundation which will weather the changing political fashions and the complaints from people who feel like it is their right to monitor other peoples’ financial matters. 

This is taken from http://keskustelu.plaza.fi/ajassa/keskustelu/t1641815-8612867#m8612867 This just keeps getting better and better. It was posted on 2.10.2007 

Tax office revealed the municipality of a customer who was under a Privacy Protection Order

My relative needed to apply for a restraining and privacy protection order and move to another municipality about 5 years ago because of harrassing behaviour from an ex-partner. As a normal Finnish person, she needs to go to work and get paid taxable income. Her harrassing ex-partner succeeded in tracking down her new municipality from her salary, because the tax office, against the order of the court and magistrate, went and gave the press the info of my relative’s tax municipality. The information was published and now there has been such serious harrassment and threatening, that another move is ahead. The tax office has said that they give information about the municipality about every taxpayer and that plucking out each customer under a protection of privacy order would cause them way too much work. The second time, the tax office said that this issue does not belong to them.How can the tax office give out such information, that another official has declared confidential, and defend that the tax municipality can be published? Isn’t the tax municipality the same as the residence municipality? Who can one turn to with this problem, if not the tax official who hascreated this problem?

This is a discussion from Parlaiment from beginning of 2005 that I translated into English.

Written question

KK 992/2004 vp - Paula Risikko /National Coalition Party

WRITTEN QUESTION 992/2004 vp
Improvement of the law regarding publicity of tax records.

To the Speaker of Parlaiment

The law regarding the publicity and secrecy of tax records (1346/1999 ) defines that such tax records are to be kept secret, which have information regarding the tax payer’s financial standing, excluding those details, which are defined as public in 5-9 and 21 of this law. The taxpayers income, paid tax, amount of prepaid tax and tax returned or tax to be paid are defined as public tax records.

The previously mentioned procedure is a result of attempting to achieve a fair relation between the tax authority’s transparency and increased trustworthyness by increasing openness and on the other hand protecting the person’s privacy and, among other things, business secrets.

It is correct and worth supporting that the citizens have, for example through the media, a possibility to get information from, for example, officials, business leaders and politicians’ salary levels and the extent of possible side incomes and tax percentages.

In this case, the starting point should be that the tax authority’s information should be as correct as possible. The goal is not completely achieved in the current framework of the legislation regarding the publicity of tax records. Tax records are, in practicality, public only in the stage that the taxation is ready. Taxation is a broad and complicated process, that there will always be a certain number of mistakes. The taxation is fixed and the mistakes are corrected sometimes even years after the taxation is ready.

The probem is that tax records which are cleaned of mistakes and fixed are, in practice, no longer public information. Faulty information has been possibly published when the tax records were ready, but the fixed and correct tax information is no longer public. The corrections remain secret, but the faulty information continues in circulation. Even when someone complains about their own taxation, it is secret information in practice.

There are numerous examples, which have been also publicized, for example, economics reporter Tuomo Pietiläinen presented good arguments regarding this in his column (HS 6.11.2004). The author concludes that in public tax records, there has been anomalies and mistakes nearly every year. A businessman, who was completely broke is in the top for property statistics, or a fireman who has a salary of 16 million Euros.

Another problem with public tax records is shown in another practical example: Underage siblings had recieved corporate stocks as an inheritance and gift. The parents intention was to handle the children’s ownership of the stocks in such a way, that the dividends were reinvested into buying the siblings more stocks. In the familiar way we have seen in the recent years, the regular growth of the stocks increased suddenly in a dramatic way, and this showed later in the children’s tax records. The underage children, because of the way they were raised, didn’t know very much about the nest-egg that would be waiting for them when they are adults. Their names were published together with the other tax records in newspapers, and the result was quite difficult and trying situation to be come the object of publicity. This also included, among other things, a death threat and completely unfounded hinting that the family was practicing tax planning.

It is clear that the legislator did not intend for his law to work in the way presented in the real life examples mentioned previously. Therefore there is reason to clarify the text of the law to better serve the original purpose.

The legislation regarding the publicity of tax records will probably need to be changed in, for example the stopping of wealth tax ….. In conjunction with this is a natural opportunity to change other observed problematic areas.

Based on the previous and according to the Parlaiment Rules of Procedure 27 I present the following question to be answered to the concerned members of the government council:

Is it in the knowledge of the government the practical effects of these certain injustices in the law regarding publicity of tax records and how does the government intend to correct the deficiencies in the legislation regarding the grievances presented here in the previous arguments?

Helsinki 14 December 2004

Paula Risikko /National Coalition Party

To the Speaker of Parlaiment

In the Parlaiment Rules of Procedure in the intent of 27 § You, Mr. Chairman, have delivered Representative Paula Risikko’s (National Coalition Party) written question to be ansered by the concered minister. KK 992/2004 vp:

Is it in the knowledge of the government the practical effects of these certain injustices in the law regarding publicity of tax records and how does the government intend to correct the deficiencies in the legislation regarding the grievances presented here in the previous arguments?

As an answer to to the question I present the following:

The publicity of tax records has been, from old times, valid during the whole period of the current tax system. There has often arisen discussion, because tax records do not naturally tell the whole truth about citizens’ wealth and income. In recent times, the situation has emphasized movement of capital because of internationalization. it is a problem of its own, the problems that are created when the occasional mistake pops up in tax records that the asker is referring to, despite the fact that their significance has noticeably decreased as the correctness of the tax records has increased. When we take into consideration that tax events are in the millions, mistakes actually happen surprisingly little. Even one mistake is, of course, too many, and they should not be underestimated.

We last had a broad and lively discussion about the publicity of tax records around half way through the last decade. It was brought forward from the level of the officials the possibility of giving up public tax records, which were considered in modern circumstances to be unnecessarily exposing information that belongs in the sphere of privacy. Using statistical methods, we can get a rather precise picture of society’s structure of income and wealth. In the modern world, tax surveillance methods have become so well developed, that public tax records are no longer necessary for so called neighbour control. The discussion that occurred at that time however received the same blunt verdict from many different politicians: there is not one party in Parliament that is prepared to support even partially limiting public tax records. It was generally held from the viewpoint of societal morals to be important, that also singular persons’ income and wealth information be made public. Something that certainly affected this was pure human curiosity. For the media, it is also a question of money. We can return to this discussion at any time, when the time seems right. Since there are really no grounds for this system, there would probably be no opposition from the Ministry of Finance government. So the question is a purely political matter.

Helsinki 5 January 2005, Vice Minister of Finance, Ulla-Maj Wideroos

http://www.nationmaster.com/graph/gov_cor-government-corruption

Here is the list of the top 10 least corrupt countries in the world. We can see the ones at the top of the list have certain things in common. They are small countries, with a small population. A smaller population is easier to govern, and the government officials are closer to the population. They are all democracies, except for maybe Singapore, which has characteristics of a dictatorship. They are also more or less social welfare states and have a market economy.

New Zealand is in the British Commonwealth. If it uses the British (Anglo) judicial model, it is quite different from the continental European model. Typically, court cases are closed and a jury is used in the Anglo model. In the continental European model, which is used in Finland, the courts are open, except in exceptional cases (like the recent Jere Karalahti drug case). Juries are not really used in the continental European model. Apparently, this doesn’t seem to affect corruption statistics.

What we don’t see in common here is these countries’ governments selling personal income data to the press. In Finland, it is said by some that this is how Finland keeps its corruption statistics down. Iceland has its tax books open for 4 days a year. There is no publishing or selling of the data. And not all that many people even bother to go and look at them during those 4 days. New Zealand and Finland are tied for corruption statistics. New Zealand seems to have managed to pull off this grueling task without selling their peoples’ personal tax data to the press. Switzerland is close behind, and it has privacy taken to the extreme.

So no, it is not selling personal tax data to the press that keeps the statistics down. But isn’t corruption when the government does things that are illegal for money? Like selling personal tax data to the press, while disregarding the data subjects’ rights?

At any rate, hats off to Finland for the low corruption. But don’t think it is because of your public tax records.