Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

bloomberg.com

Post reply on HN
Print view View original

31–40 of 160 posts

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

#31

Post by iaskwhy »

Having been to Copenhagen a few times in my life (partner used to live there) I came to realise there might be two extremes in terms of the way you look at tax rates.

Some people might move to Dubai because its income tax is low or even nil - that attracts people who are more interested in their own well being than their communities'.

Now some people - I would include myself here (rightly or wrongly, it doesn't really matter) - look at countries with high taxes and low inequality and enjoy the idea of a country where the well being of the community might came before than yourself getting rich.

It's all a bit utopical (and, knowing Copenhagen, it really feels a bit off reality) but I can't help not thinking about it.

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

#33

Post by V-2 »

vixen99 wrote: post #26
jonatron wrote: 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 sui…

> 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.

Quite right... see https://en.wikipedia.org/wiki/Law_of_Jante

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

#34

Post by ulrikmoe »

atemerev wrote: post #10

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…

The danish tax system is "simpler" than that of the United States, but it is very far from "simple and all inclusive".

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

#35

Post by hedgew »

I'm not in Denmark but in a very similar European country. I don't want the high taxes. The current taxes and mandatory payments feel unfair.

The generations before us worked during the greatest economic boom in history, were mostly employed in safe and high paying government jobs (still are), bought houses before their values tripled, and are now receiving monthly pension payments that are almost twice what most young people earn through work. My effective tax rate is more than 50% (including mandatory pension payments that are more than 10% of my pre-tax pay). A good part of that goes to pay the pensions of existing retirees. A third of my remaining pay goes into paying rent for the apartments owned by the older generation. In the end, I get around 1.5k euro out of the 7k I cost my company (employers also have to pay additional social and pension payments).

Looking at the current luxurious lifestyle of the older generations, and the rapidly ageing population, and increasing youth unemployment — I want out.

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

#36

Post by masklinn »

atemerev wrote: post #10

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…

> In other countries, taxes are complicated (no citation needed).

Lots of citations needed actually, from what I know of it the Belgian tax system sounds pretty similar to the Danish one for employees (most taxes are held directly on salary, there's a year-end tally for deductions and the like if necessary), tax rate is ~40% of income.

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

#37

Post by VeejayRampay »

atemerev wrote: post #10

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…

Let's be serious here. I'm French, all for high taxes and all but please let's not delude ourselves thinking that American people pay "around 50%" taxes. As soon as you have enough money to afford it, you'll pay a tax lawyer to get that down to about 15% or something, thanks to a bajillion hidden tax system loopholes allowing the rich to get an advantage on the less fortunate.

And even if you take into account the price of college, health care and everything, you'll get to about the same amount but the whole point in the US system is that you do NOT have to pay for other people, cause who needs solidarity in a society.

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

#38

Post by Retric »

ekianjo wrote: post #5
Retric wrote: post #2

The sad thing is the US has a focus on taxes not spending. SS, Medicare, State, Local, Federal spending add up to 41% GDP yet taxes are no where near that. But, unlike say Japan at 42% GDP spending we don't get free healthcare etc.

Lol healthcare is far from being free in Japan.

100% free sets up perverse incentives. The minimum subsidy is 70% and there are effective price controls. So the actual bill is often higher in the US for those with decent insurance.

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

#39

Post by MrJagil »

ulrikmoe wrote: post #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/...

That is a very simplistic attitude. First of all, I have met countless entrepreneurs who support this "scheme", just to counter your anecdotal evidence. Second, shouldn't a "welfare scheme" benefit the poor, not exist at the expense of them? Are you arguing that the danish welfare system failed in what could be considered it's most essential undertaking? Third, "benefits the majority at the expense of the productive few" doesn't ring true to me. You make it sound like the "productive few" do not receive the same benefits as everyone else, and that the fact that everyone else receives benefits is inconsequential. It's not. Time and again (financial) equality in society has proven to be immeasurably beneficial, in so many regards.

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

#40

Post by alkonaut »

jonatron wrote: 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.

Inequality is a large driver of crime. So keeping a low inequality means you don't have to spend as much on incarceration, police, courts etc., as you would have otherwise. That in turn means you can spend money on things that tax payers care about (schools, etc.) which increases equality, and so on.
Post reply on HN