The unemployment insurance premiums paid by employers and wage earners will decrease significantly next year. The government must decide next week whether to allow taxation to be reduced with all the money or whether to use the opportunity to curb indebtedness.
Prime minister Petteri Orpo (kok) hinted at Yle’s A-talk on Thursday evening that the government could use part of the millions resulting from the reduction in unemployment insurance premiums to strengthen the public finances.
The unemployment insurance premiums paid by employers and wage earners will decrease significantly next year, announced the Employment Fund, which administers them at the end of August. According to its presentation, an employee’s average unemployment insurance premium is almost halved.
The reason is not only Finland’s high employment, but also the government’s actions. When the government cuts earnings-related unemployment insurance and abolishes adult education support, the Employment Fund’s expenses will decrease and the unemployment insurance premium can be reduced.
Orphan according to the board’s decisions, the share of the reduction in payments is 200 million euros. According to him, taxation is being considered to increase by this amount.
All in all, taxation is still getting lighter, as the employment fund proposes to reduce unemployment insurance premiums by a total of around 1.4 billion euros.
The matter is to be decided at next week’s budget meeting, where the government will prepare its proposal for next year’s state budget.
Unemployment insurance premiums the reduction has an effect on the employee’s bank account, as does the reduction in taxation.
In practice, then some of the cuts in unemployment benefits decided by the government are taking place instead of reducing indebtedness, to lightening taxation, although the right-wing government has both before and after the elections emphasized the need to reduce Finland’s indebtedness.
The government has considered whether part of the tax reduction should be directed to reducing the debt mountain, for example by reciprocally raising the income tax. In this case, it would not be necessary to take on as much debt as had been anticipated.
Both employees and employers are represented central organizations appealed earlier this week that the reduction in unemployment insurance premiums should not be used to fix other public finances.
HS already told on Mondaythat they practically put pressure on the government to implement a billion-dollar tax cut.
Read more: Unemployment insurance premiums will be reduced by hundreds of euros next year
Read more: Information from HS: Employee organizations are pressing for a tax reduction in the billions
Read more: The central organizations demand: The reduction of unemployment insurance premiums must not be used to repair the public finances
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