[Inside Chodong] Why Finns Are Happy Even While Paying 40% Income Tax

In the heart of downtown Helsinki, Finland, instead of high-rise apartments, stands a three-story central library. This is 'Oodi,' the Central Library built over 20 years as part of Finland's centennial independence project, and it is nicknamed the 'Living Room of the Citizens.'

Reading room view located on the 3rd floor of the Oodi Central Library in Finland. Photo by Lee Hyunju

When I visited Oodi last month during a business trip to Finland, it was bustling with a diverse range of people—from kindergarteners with their teachers, adults with children, young people there to study, to professionals working in fashion design. Since visitors can even play board games, it becomes even more crowded with families on weekends. Oodi offers not only books but also 3D printers, laser cutters, sewing machines, music and video studios, game rooms, and even a kitchen. Anyone can reserve a space and spend time as they wish. People say that Oodi has everything except a sauna. Oodi breaks the common stereotype that libraries must always be quiet spaces.

Two things made me envious: the fact that people of all ages can pursue their own enjoyment in one shared space, and that everything is free of charge. There are no fees for using Oodi's facilities. If you have reserved a sewing machine, you only need to bring the thread you require. The children's playground is, of course, open to everyone. This is possible because the library is funded by taxes.

Perhaps because there is a sense that high-quality public services are returned to them, Finnish citizens are willing to pay taxes. The 'policy feedback effect' is in full operation. Finland is one of the countries with the lowest tax resistance. The Finnish personal income tax system is progressive, with higher earners paying higher rates; if you make 40,000 euros (about 70 million won), your personal income tax rate is around 40%. Nevertheless, 70% of Finnish people answered that paying taxes makes them 'happy.'

A resident living in Helsinki, Finland is working using a badge button press machine at 'Urban Workshop' located on the 2nd floor of Oodi. Photo by Hyunju Lee

Finland also discloses tax information with great transparency. The Finnish Tax Administration has a system for responding to all media inquiries. The tax authority even organizes a team of experts specifically to answer questions. The officials from the tax authority I met in Helsinki strongly believed, "If a journalist is curious about something, it means the public is curious, so the tax authority must provide sincere answers."

Taxes in Finland are used for the benefit of the entire community. Finnish people know well that the government will not leave them alone in difficult times. Whether they face unemployment or live with a disability, there is a deeply rooted trust that the government will provide support. Welfare-related expenditures in Finland account for about 40% of the national budget. The ratio of public social welfare spending to gross domestic product (GDP) is approximately 31%, placing Finland at the top among Organisation for Economic Co-operation and Development (OECD) countries.

The recording studio located on the second floor of the Audi. This place includes a band practice room, an acoustic instrument room, and an electronic music studio, all available for anyone to use. Photo by Lee Hyunju

Recently, Finland's unemployment rate has been in the 10% range—one of the highest in Europe. The country, sharing a border with Russia, has been directly impacted by the war in Ukraine. Yet Finnish labor experts all commonly say, "No one is left behind in Finland." Unemployment is a negative event that has a significant impact on individuals, but there is a sense of confidence that the welfare system can provide the necessary support. The welfare system that Finland has implemented over decades is not simply an advanced or temporary measure, but rather a long-standing promise between the state and its citizens, made possible through taxes. The second round of applications for high oil price compensation has begun in South Korea. What kind of promise does the Korean government wish to make to its people?

This content was produced with the assistance of AI translation services.