Denmark Tip-Toes Into Tax Cutting Arena

Aug 30, 2017

Denmark’s government wants to make the country a more attractive place to work. But Denmark is one of the world’s most heavily taxed countries. The government is proposing cutting taxes to “make it cheaper to save toward retirement and reduce levies on cars.” The government won’t be rushing to slash taxes and government spending though. Instead it will tip-toe into the tax cutting arena. It is proposing to cut taxes by a mere $3.7 billion, and it will take until 2025 to phase in the proposed measures. The Finance Minister said, “we’re increasing the gains associated with working, we’re making it more attractive to work more and we’re ensuring that it’s more worthwhile to save up toward retirement.” By encouraging more people to work, the government expects more revenue from its value-added tax. U.S. Senator Bernie Sanders has called for America to be more like Denmark. No word on whether Denmark’s embrace of tax cuts will cause the senator to find a new high tax role model.