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Where does the money come from? I'm an American and so I'm less familiar with other countries policies. I get that mandating a very generous family leave poli
by JackFr 7y ago
Where does the money come from? I'm an American and so I'm less familiar with other countries policies. I get that mandating a very generous family leave policy is wonderful for parents and good for society. To me it seems it's gotta be tough for small business owners though. A business of lets say 8 employees simply cannot afford a paid six month leave without it impacting its performance. How is that handled in those countries?
That being said, I'm inclined to proposals here which fund it through Social Security or a Social Security like system, which would level the playing field between small and large businesses.
- zackmorris 7y agoWithout knowing anything about it, I'm inclined to think that it's a combination of Finland's offshore oil drilling income of at least $5.23 billion and their tax rate of 51.6%: https://oec.world/en/profile/country/fin/ https://oec.world/en/profile/country/fin/ https://tradingeconomics.com/finland/personal-income-tax-rate https://tradingeconomics.com/finland/personal-income-tax-rat... The US has a lower top income tax rate of 37%: https://www.debt.org/tax/brackets/ https://www.debt.org/tax/brackets/ Other more democratic socialism leaning countries redistribute income tax from the wealthy to fund the needs of the general population, but the US just gives that money to people who are already rich. Supposedly this raises all incomes, but incomes have not risen appreciably since the mid 1970s: https://economics.stackexchange.com/questions/15558/productivity-vs-real-earnings-in-the-us-what-happened-ca-1974 https://economics.stackexchange.com/questions/15558/producti...
- Ndymium 7y ago> Finland's offshore oil drilling income of at least $5.23 billion Huh? We don't have any sources of oil. We do have oil refineries but not any wells or drilling. You may be thinking of Norway.
- deleted 7y ago[deleted]
- zackmorris 7y agoAh thank you, sorry I thought that all Nordic countries had oil drilling. I stand by my statements on tax policy though.
- bduerst 7y agoYou're misreading the OEC report - Finland exports refined petroleum. They don't do any drilling. Even then it's only 7% of their total exports. You're confusing Finland with Norway and their national fund.
- hobbes78 7y agoIn most of Europe, the company doesn't pay anything, so it isn't tough for it. Every worker contributes a percentage for the Social Security, so basically the cost gets diluted among all tax payers.
- crispyporkbites 7y ago> A business of lets say 8 employees simply cannot afford a paid six month leave without it impacting its performance. If all it’s competitors have to, what’s the difference? If you’re really concerned make an exemption for small businesses that allows them to claim the costs back from the government. Edge cases like this are irrelevant, most Americans are employed by enormous companies that can most definitely afford it.
- JackFr 7y ago> If all it’s competitors have to, what’s the difference? Because it tips the scale in favor of large companies vs. small. Small firm cashflow is lumpy, large firm cashflow is smooth, and payrolls need to be met. > Edge cases like this are irrelevant, 17% percent of the work force is employed by firms with fewer than 20 employees, 27% by firms with 50 or fewer. https://www.bls.gov/web/cewbd/table_f.txt https://www.bls.gov/web/cewbd/table_f.txt
- gvjddbnvdrbv 7y agoThe company does not pay the parent on leave. The state does. Its part of the concept of a welfare state.