Räsänen criticizes inheritance tax reduction proposal by Valkonen in Finnish debate

In a heated discussion on Monday evening’s A-studio, Joona Räsänen, a member of the Social Democratic Party (SDP), expressed his frustration regarding a proposal by Ville Valkonen of the National Coalition Party to halve inheritance and gift taxes. Räsänen questioned how the potential loss in tax revenue, which amounted to approximately €1.2 billion last year, would be compensated. He expressed concern that the proposal could lead to either increased national debt or higher taxes elsewhere.

Valkonen defended his proposal by asserting that reducing these taxes would stimulate economic growth, claiming that such a tax burden hampers generational transitions in businesses. The National Coalition Party aims to eliminate the inheritance tax altogether, and this two-year trial is seen as a step in that direction.

Valkonen, who also chairs the parliamentary tax committee, suggested replacing inheritance tax with a capital gains tax, similar to the system in Sweden. Under this system, taxes would be levied on appreciated assets when sold rather than at the time of inheritance or gifting.

Räsänen, however, was not convinced by Valkonen’s arguments, stating that the proposal seemed more focused on increasing the National Coalition Party’s popularity than genuinely enhancing Finland’s economy.

Support for the measure has also come from Matias Marttinen, the chair of the National Coalition Party’s parliamentary group. Currently, inheritance tax is imposed on estates exceeding €20,000, with gift tax applying to amounts over €5,000.

The discussion continues, and viewers can catch the latest updates on the A-studio broadcast available on Yle Areena.