Finland's Social Democrats, who may be returned to power for the first time...
HELSINKI - Finland’s Social Democrats, who may be returned to power for the first time in 20 years on Sunday, plan to raise taxes to fund the country’s generous welfare system as it struggles to cope with a rapidly aging population.
“We need to spread our tax base and we need to strengthen it. That’s a big policy change here in Finland if we do that,” Rinne said. But the tight finances led to austerity measures and spending cuts such as reductions in unemployment benefits, pension freezes and cuts to public sector holiday pay, which made his government deeply unpopular.
Rinne’s talk of raising taxes is unlikely to drive off his supporters, many of whom value highly Finland’s huge welfare state.
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