Finnish Economic Policy Council background report: Lump-sum transfers are the most effective way to address unequal fuel tax burdens to low-income households

According to a background report for the Finnish Economic Policy Council, lump-sum transfers are better at improving the equity of fuel taxation compared to reductions in income or fuel taxes. Tax reductions would disproportionately benefit high-income households. Furthermore, reductions in fuel taxes could create harmful incentives to increase driving. Excise taxes on fuels are the […]