Tuesday, 8 September 2009

Tax Men : "They are coming from Venus"

"Taxation task force wants to cut back on tax deductions.

A working group set up to reform taxation in Finland has set as its goal the establishment of as wide a tax base as possible.

The group is not expected to propose that all tax deductions be eliminated. For instance, the biggest tax break, the right to live in a home that a person owns him, or herself, is unlikely to be changed.

Ordinary people do not understand the idea that living in their own home constitutes income of some kind, or that this income might be taxed, Hetemäki concedes."

How about taxing the right to breath? afterall it cost to protect the environment hence the quality of oxygene...if we follow the "tax man" logic.

Nethetheless the government seem to become innovative in order to bring some revenue into its coffer before..it declare itself bankrupt? who knows...

"It is expected that the working group will call for the taxation of profits on the sale of one’s own home. Now a home can be sold tax-free if the seller has lived in it for at least two years. The working group is also expected to propose the elimination of the tax deduction on the interest paid on housing loans."

Although, for some cases I agree, the tax break on interest rates deduction for example should be eliminated and it is the perfect time now as interest rates are almost near zero... so the tax payer won't notice a thing...in the short term.
In any case,it was one reason among many others that explain the current housing bubble.

No comments: