Part 6/8:
Finland’s extensive welfare system is cited as a crucial component of its happiness index. Many services are funded through a high taxation framework—where personal income taxes reach almost 57% and sales tax is near 25%. This support system provides free education, healthcare, family benefits, and state-subsidized housing, creating a secure environment.
However, the high tax burden comes with expectations: citizens must trust that their contributions will translate into reliable services. This trust in governmental institutions is vital and serves as a stabilizing feature in the Finnish social contract.