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Most Danish voters oppose government plans to cut the top rate of income tax

bloomberg.com

11–20 of 160 posts

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#11
post #8
post #6

More accurately, Danes value their welfare state and high-equality society and are smart enough to accept that it has to be paid for. Therefore any campaign on cutting taxes immediately attracts the suspicion: what services are going to be cut?

So are you saying its unreasonable for services to become less costly over time ?

Not unreasonable but so far unobserved. Any initiatives to reduce costs seem to increase an even costlier bureaucracy.

/generalization

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#12
>The government's plan involves cutting the top rate of income tax by 5 percentage points

>The main idea behind the change, which is now being discussed by parliament, is to make salaried work more attractive and woo some 40,000 people off welfare in the process. Not a bad plan for a country that faces labor shortages and growing pressure on its costly social safety net from an aging population.

This is a sales pitch for tax cuts on the rich, not an idea.

Somebody, somewhere made a campaign contribution and this is their reward.

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#13
post #8

Earlier quoted context omitted.

So are you saying its unreasonable for services to become less costly over time ?

Not unreasonable but so far unobserved. Any initiatives to reduce costs seem to increase an even costlier bureaucracy. /generalization

Also if services are getting cheaper then there's a question of why the money isn't reinvested to make those services better for the same price?

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#14

In other countries, taxes are complicated (no citation needed). There's income tax, but there are also social security payments, industry-specific taxes, etc. And you have to pay for your own education and healthcare! Danish tax is simple and all inclusive. It is around 50%, which is about the same as in US if all hidden obligatory payments are taken into account. But it is all inclusive: all education and healthcare…

I get your point, but you make it sound like Denmark has flat tax. For the record, it does not.

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#15
post #8
post #6

More accurately, Danes value their welfare state and high-equality society and are smart enough to accept that it has to be paid for. Therefore any campaign on cutting taxes immediately attracts the suspicion: what services are going to be cut?

So are you saying its unreasonable for services to become less costly over time ?

Far less risky to first make the services less costly, show a surplus and that service has not been degraded and then lower taxes than lowering taxea first.

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#16
post #8
post #6

More accurately, Danes value their welfare state and high-equality society and are smart enough to accept that it has to be paid for. Therefore any campaign on cutting taxes immediately attracts the suspicion: what services are going to be cut?

So are you saying its unreasonable for services to become less costly over time ?

I think given the choice, many Danes would prefer to keep that taxation as is, and and get more and better services.

If some public service would get cheaper (so fare all services seems to just get more and more expensive), there's a ton of other services that could really use the money that would be freed.

Honestly I think that the Danish public sector is a terrifying example of mismanagement of public funds. We simply aren't getting enough value for the taxes we pay. Part of it is insane ways of handling purchasing and outsource of public work.

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#17
post #8
post #6

More accurately, Danes value their welfare state and high-equality society and are smart enough to accept that it has to be paid for. Therefore any campaign on cutting taxes immediately attracts the suspicion: what services are going to be cut?

So are you saying its unreasonable for services to become less costly over time ?

No silver bullets + Baumol Cost Disease + greater expectations = very unlikely that services will become cheaper. Someone promising to make public services much cheaper should be treated like someone offering to sell you a $10 Rolex. It's either fraud or theft. God help you if someone tries to sell you a computer system to improve public services, that needs very careful management (18F, GDS, not Capita and friends) if it's not to become a cost writeoff.

I should probably expand on Baumol Cost Disease: many public services inherently involve humans doing touchy-feely automation-resistant things, and as the rest of the economy becomes more automated or imported this gradually becomes relatively more expensive. Things like childcare, where the cost in childminder-hours-per-child is inherently fixed. You can raise the ratio (ie reduce quality), but you can't produce an hour of childminding in 50 minutes.

Besides, when redistribution is a goal in itself, it's a mistake to talk purely about cost and you have to look at outcomes.

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#18

> Perhaps it's no coincidence then that their word for taxes, skat, also means “sweetheart”. The word "skat" means treasure . That's why we also use it as a word for our sweethearts.

Oh cool, we have the same word in Dutch, "schat".

Re: Most Danish voters oppose government plans to cut the top rate of income tax

#20
post #14

In other countries, taxes are complicated (no citation needed). There's income tax, but there are also social security payments, industry-specific taxes, etc. And you have to pay for your own education and healthcare! Danish tax is simple and all inclusive. It is around 50%, which is about the same as in US if all hidden obligatory payments are taken into account. But it is all inclusive: all education and healthcare…

I get your point, but you make it sound like Denmark has flat tax. For the record, it does not.

In fact there are several levels - municipal, state and church tax, bottom, middle and top tax. VAT, as well as other industry taxes, among other a tax on the air in softice and an special nut-tax.
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