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

bloomberg.com

21–30 of 160 posts

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

#21

>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…

  and raising personal allowances so as to boost the salaries of the lowest earners by an average of 7 percent
So the plan is to cut the taxes of high-earners, as well as improving the tax-free allowance for everyone…

Without increasing other taxes, or reducing spending?

Where's the extra money coming from?

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

#22
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?

Plus 30% of the workforce is employed in the public sector so for a lot of people it's more serious than just some reduced benefits:

https://en.wikipedia.org/wiki/List_of_countries_by_public_se...

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

#23

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…

Had the same feeling about Australia vs France. In Australia I'd pay $120 for a tax agent (~1% of my income tax), it would be over and I'd be happy about it. In France I feel like I'm being chased, because it's such a socialist country: I earn €2000 per month after tax, I feel like I'm being told by the tax administration that I'm a thieve because I'm rich, even though they're the ones who attempted to double-tax me between Australia and France. I don't mind the 63%[1] that goes to the government between what my customers pay my company and what I receive as a net salary, it's just, they could at least make it respectful and simple.

[1] VAT 20%, employer tax 50%, income tax 14% on the remainder, plus an accountant to understand the law and that makes 63%. Yes, I get I'm supposed to receive benefits from the mandatory insurances, except:

- by design they never apply to the situations I might fall into (unemployment when you're between 2 countries, medical insurance when you travel, retirement going under the poverty levels by the time I'm 60, paraplegic benefit being under 800€ per month for the rest of your life - how are you supposed to live on that?).

- and those taxes don't even succeed at keeping France afloat, because we have a socialist president who's hiring for about $6bn of policemen whose work is just to bust into Muslims' houses. Yeah, unemployment reduced, socialist goal fulfilled. Doesn't sound more social that giving a job to everyone undepending on their race, however.

I'd be ok with 63% retention if it were simple and useful.

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

#24
post #7

Not mentioned is that Denmark has the OECD's lowest inequality. Having visited a couple of times, it does feel like they're doing something right.

Lowest income inequality. Highest wealth inequality (Zimbabwe level)... not sure if that is the right way to go, though...

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

#25
This is simply not true. In Denmark we have a welfare and tax scheme that benefits the majority at the expense of the productive few and the poor (Director's law?). I have never met a danish entrepreneur who didn't complain about taxes, never ever... http://taxfoundation.org/sites/taxfoundation.org/files/docs/...

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

#26
post #7

Not mentioned is that Denmark has the OECD's lowest inequality. Having visited a couple of times, it does feel like they're doing something right.

That's a metric that evidently appeals to you. So be it. It's a relative measure and my preference, possibly shared by others, is for an absolute one. Human nature and entrepreneurship being what it is, as general wealth increases thus does inequality increase. We have seen this happening on a grand scale across the world during the last 20 years or more.

One other point: what suits the Danes wouldn't necessarily suit the Brits or others. National characteristics are certainly different even we try sometimes to ignore this probably because it's tacitly interpreted as some hint of mild racism.

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

#27

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…

[deleted]

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

#28
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.

And they have VAT too. Everybody has to have VAT in EU. Or else EU gets really angry.

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

#29
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 ?

Most obvious straw man I have seen on HN for a long time.

After reading the parent for three times I could not find anyzhing which would imply that he did saying anything implying this.

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

#30
post #14

Earlier quoted context omitted.

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.

Most of those do not interfere with the lives of the average Danish citizen. Church tax is interesting though, and highly debated. Everyone's leaving the churches, especially in Copenhagen. Many teenagers deregisters from the Church of Denmark[0] to save money; the usual counterargument is mostly based on history; i.e. we should support the churches for the buildings'(not the institution) historic value.

[0] https://en.wikipedia.org/wiki/Church_of_Denmark

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