Make or break?
17 November 2011 | This 'n' that
In Finland, tax returns are public information. So, every November the media publish lists of the top earners in Finland, dividing them into the categories of earned and investment income. Every November it is revealed who are millionaires and who are just plain rich.
The Taloussanomat (‘The economic news’) newspaper offers a list (Finnish only) of the 5,000 people who earned most last year (in terms of both earned and investment income, together with the proportion of income they have paid in tax). You can also search lists of various status and professions: rock/pop stars, media, sports, MPs, celebrities, politicians of various political parties…
So let’s take a look at Taloussanomat’s selected list of authors: number one is the celebrity author Jari Tervo (309,971 euros, tax percentage 45); number two, the internationally famous Sofi Oksanen (302,634 euros, 46 per cent); the next two are Sinikka Nopola, writer of children’s books, (264,000) and Arto Paasilinna (262,300; now after an illness, retired as a writer), translated into more than 30 languages since the 1970s. (The film critic and author Peter von Bagh made almost 900,000 euros – not by writing books, but by selling his share of a music company to an international enterprise.)
As tax data are public in Finland, there’s vigorous and decidedly informed public debate on how much money, for example, directors of public pension institutions and government offices or ministers and other top politicians are paid, and how much they should be paid: what is equitable, what is reasonable? A million dollar question indeed…
Among the European Union countries, it is only in Finland, Sweden and Denmark that there is no universal minimum wage. Here, wages are determined in trade wage negotiations. The average monthly salary in the private sector in 2010 was approximately 3,200 euros. In contrast to that, Olli-Pekka Kallasvuo, the Nokia CEO and President, who tops the 2010 tax list, earned a salary of 8 million last year, because – and precisely because – he was sacked (and replaced by the Irishman Steven Elop).
The CIA’s Gini index measures the degree of inequality in the distribution of family income in a country. The more unequal a country’s income distribution, the higher is its Gini index. The country with the highest number is Sweden, 23; the lowest, South Africa, 65 (data from both, 2005). Finland’s figure is 26.8 (2008), Germany 27 (2006), the European Union’s 34. The United Kingdom stands at 34 (2005), and the USA at 45 (2007). The figure in Finland seems to be on the rise though, as the figure back in 1991 was 25.6.
There’s been plenty of research and debate on economic inequality and the ways it harms societies. This link takes you to a fascinating video lecture (July 2011 – now seen by almost half a million people) by Richard Wilkinson, British author, Profefssor Emeritus of social epidemiology.
Tags: Finnish society
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