The Social Democratic Party (SDP) in Finland has strongly opposed the National Coalition Party's (Kokoomus) proposal to abolish inheritance tax in favor of raising capital gains tax. SDP's Joona Räsänen highlighted that research from the Taxpayers' Central Association indicates that replacing inheritance tax with capital gains tax would lead to increased taxation for those selling inherited assets. This proposal is seen as favoring those who do not need to sell their inherited property, rather than benefiting the average Finn.

Jukka Kopra from the National Coalition Party argues that any abolition of inheritance tax should not result in increased taxes for heirs. However, Räsänen contends that this shift would effectively pass tax reductions for millionaires onto ordinary Finnish taxpayers, thus exacerbating existing inequalities. The SDP believes that the focus should be on equitable taxation rather than policies that disproportionately benefit the wealthy.

The debate surrounding the inheritance tax highlights broader discussions about tax reform in Finland and the implications of taxation on wealth distribution. The tensions between the SDP and Kokoomus reflect differing priorities in how to handle taxation and public spending, especially concerning inheritance and wealth transfer, which could have significant ramifications for fiscal policy and social equity in the country.