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The Danish Tax Commission has published proposals a comprehensive set of changes to the tax system, aimed primarily at lowering Denmark's high taxes for individual taxpayers.
Personal taxes in Denmark are both high and complex...
If this country is looking for a tax approach that will reduce complexity,not cause some workers to relocate and also stimulate growth then should Denmark consider moving to a flat tax? Flat taxes have been good for countries like Estonia,Slovakia and Bulgaria.
It won't happen because to be revenue neutral 90% of the people would have to see a huge tax increase just so 10% could receive a huge tax break. That won't fly in a country like Denmark.
If this country is looking for a tax approach that will reduce complexity,not cause some workers to relocate and also stimulate growth then should Denmark consider moving to a flat tax? Flat taxes have been good for countries like Estonia,Slovakia and Bulgaria.
Where would they relocate? Interestingly, in spite of the bad, complicated tax code, I don't see many Danes in line for green cards. Not only Danes, but Swedes, Norwegians, and Dutch who also "enjoy" high taxes, don't seem to be packing their suitcases.
In fact the few I've met here almost always tell me they'd go back home to actually raise a family. The reasons cited include better health care, better schools, less crime, and better quality of life. The ones that are here come mostly because they're young and want to see the rest of the world plus there are more beginning level openings here but by and large virtually all of them want to go back home once they've spent a couple years here. That says something I think.
^
Denmark is a well developed country and it's ranked as one of the world's least corrupt countries. This plays a big part in it's progress and appeal. They've also adopted some economic policies that even Cato institute people seem to like and feel more Western European countries should consider.
Doing some reading I've seen a few articles that question the actual reasons for Danes leaving the country. It seems to be debatable as to how much high taxes influence their decisions to go work in other countries. Anyway,the Danish gov't has seen the need to reduce taxes because they feel that this will help economic growth.
Like with other countries with similar welfare systems I'am interested in seeing what these countries will be like 8 to 10 years from now when most of their baby boomers are retired and how this will affect tax revenue and consumption of social services.
The rest of the world is lowering tax rates while this administration thinks raising them is the answer. Guess what the consequences are...
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