It is amazing that yes, we the people of the happiest place on Earth, are being thrown around in the United States presidential election….
Hillary says she loves Denmark but hey, no socialism in the United States, OK?
“We are not Denmark,” Hillary told her opponent Bernie Sanders. “I love Denmark.” “We would be making a grave mistake to turn our backs on what built the greatest middle class in the history of the world.”
The funny thing is that while everybody in the US is talking about how the wonderful Danish system (and it’s bloody high taxes) distributes this tax wealth into free healthcare, free education and great maternity and welfare benefits…..
Back in Denmark, we are debating about reducing/removing the dreaded ‘top tax’ in order to stimulate growth. And by the way, ask any Dane on the street, they don’t consider themselves a socialist. Just citizens of one of the best systems in the world.
Denmark collects a lot of taxes. The top income tax rate is 60.3 percent; there’s also a 25 percent national sales tax, on everything including food. Overall, Denmark’s tax take is almost half of national income, compared with 25 percent in the United States. Indeed, the Danes were even the first in the world to have a ‘fat’ tax that put an extra tax on sugar, butter and chocolate. Luckily, they abolished it after people threatened that it would affect the Danish Butter Cookie industry.
Our new prime minister, Lars Lokke, loves the new tax cutting idea and says that doing away with the additional top tax rate of 15 percent would increase the supply of labour and boost the gross domestic product (GDP) by 15 billion kroner.
This projection is on the basis that abolishing the top tax rate would encourage top tax payers to work an average of 1.7 percent more, more people to go after high-paying jobs and fewer highly-educated people would leave the country. But most importantly, more Danes would spend more money. Apparently, this tax break would results in 7.3 billion kroner in sales taxes from a rise in consumption associated with people being better off and more income tax at the lower rate as a result of the increased supply of labor from the addition of new jobs.
Sounds like the Danish version of Reagonomics.
A recent article in Berlingske showed that many average middle class families in Denmark would benefit greatly from this tax break.
I guess we in Denmark are trying to learn from the architects who built the ‘greatest middle class in the history of the world’. 🙂