Corporate balances during the last recession was stronger than before and has served as a buffer during depression. If companies would have had weaker balances, the consequences of the recession would have much worse than what we have now seen. Many small businesses have, thanks to a more stable economy, been able to avoid bankruptcy and layoffs.
Recently, there have been voices raised for a tightening of dividend taxation. The minister of Labor and Industry Anne Sinnemäki ( The Green Party) 19.1 demanded the strengthening of dividends taxation in unlisted business companies. The statement also used the term tax-free dividends. Dividends are by no means free of tax. The entrepreneur pays before dividend distribution, taxes in various forms such as tax on company profits and payroll taxes. A company pays 26 per cent tax on their profits, after which the company may pay a ” tax-free” dividend of not more than nine percent of the free capital.
Any tightening of the business environments in the current economic situation could risk many of the jobs that has been created by businesses, and may cause the state far more costs, than what increased tax revenues would bring in. It would be a “green poison” to sm-entrepreneurs.