In Finland funded by taxes
In Finland you get all back for your taxes
The graphs and tables are counted and drawn by Excel VBA and finished with Paint.NET. The formulas used are derived Finnish Income Tax Act (1553/1992)
OBLIGATORY CONTRIBUTIONS AND OBLIGATORY RETIREMENT PLAN
The lowest line (blue) represents all kind of obligatory (Social Security …) contributions you have to pay. They are paid for your pension and for the situations of sick leaves and for sickness & unemployment benefits. In Finland you get pension without you your own agreements with your employer or a private company.
Finland state with Tax Administration collects these premiums, but the real system is so that you employer withholds these directly and automatically before paying wages to you (usual withholding system).
Is it a good pension which your get? That is the good question, but if it is not obligatory you may not take care of it during working years. The retirement and other contributions are about 10 percent of the total earned wage (no deductions or other reliefs). Of course you can also save extra money to your pension with different kind of systems and get some tax-reliefs. Any way even the lowest wages (from 1 euro up) must pay all the contributions.
LOCAL TAXES FROM 16 000 EURO/year
The red line (the second) represents local taxes. Local (city) income taxes are collected at the same time as other income taxes. In practice it does not vary much between the cities. If your income per year is about 16 000 or more you have to pay local taxes. Almost everywhere in Finland your have a short distance to a good local public basic school which is only partly funded by your local taxes. The rest of funding comes by other taxes and it is in almost same level everywhere.
We have no private schools except some special schools, which are religious or have some special ideology of the education
After the wage income 16 000 a year you pay local tax a little. The tax rate increases very quickly. The last value of local tax rate is about 17 %. at the point of 46 000 euro/year. After that the local tax has no progression .
WHAT DO YOU GET – THE BENEFIT OF HIGH TAX RATES
The income tax rates of the wage-earners are quite high in Finland, but what your receive back for the money you pay? The whole education system is funded by taxes and you have not to begin save money, when you get children. The universities are not like Harvard, but we have to exchange knowledge and learn (and we learn) language. The universities are in good average level in Europe and in the whole world.
… AND HEALTHCARE AND SOCIAL SECURITY SYSTEM FINLAND
… is almost totally funded by taxes. The customers have to pay little contributions (10 –100 euro) of every visit to a doctor. We have also a quite small private sector, but it is a good competitor to a public sector. It is not too expensive in easy cases and you get help almost immediately. You must queue a little to public sector services.
The yellow line (the highest) represents taxes you pay to the state (like Federal Income Tax in USA). The real tax duty to state tax begins from 36 000 euro/year. The scale of it is progressive, the total maximum tax rate is below 50%. In the table there is a wage of amount 435 000 euro / year (53 % tax rate), but we have about 400 (four hundred) wage-earnes on this level. The number of wage earners (even the smallest) is about 2,4 million. The richest people in Finland do not primarily earn wages; they have capital income(s) with tax rate 34 per cent (no progression).
BY THE WAY:
We do not pay taxes according our marriage status only according income level (and a few natural deductions) – if we have children (under 17 age) we have no reliefs in taxation but we get social benefits.
a book which compares USA and Finland systems (not detailed tax information, but opinions to think): Anu Partanen: Nordic theory of everything
Some techical and detailed information of drawing tax rate graphs (with R -language)