randahl , (edited )
@randahl@mastodon.social avatar

Denmark is known as a country with steep taxes. But there is a stark difference in taxation, depending on who you are.

Three examples:

A factory worker pays 51.8 percent in various taxes on their income.

Company profits are taxed at 22 percent.

The Maersk shipping company is not taxed at all, but pays a so-called tonnage which equates to around 0,3 percent.

Joachim Holger Waldemar Christian pays 0 percent tax on the profits of his farm, as he is the brother of the king and exempt by law.

benroyce ,
@benroyce@mastodon.social avatar

@randahl

denmark is not immune to the forces of plutocracy. it's always a constant battle against corruption, everywhere, for all time. some people think we beat plutocracy once, and poof, it disappears forever. no, it's merely a maintenance function of civilization to constantly fight corruption

the rest of the world looks at scandinavia as a shining beacon. but you came from the same place, and it was a struggle, and is a struggle. always

https://www.youtube.com/watch?v=vuo4NVFt1JE

theseeduneed ,
@theseeduneed@mastodon.social avatar

@randahl
Morale: You'd better be very rich if you happen to reside in Denmark. Well not only Denmark, but these numbers really hit it out of the park!

xerge ,
@xerge@mastodon.nl avatar

@randahl That 50% sounds exceptionally high. Is that the highest average tax rate in the world?

EvilCartyen ,
@EvilCartyen@mstdn.dk avatar

@xerge @randahl

"In Denmark, the average single worker faced a net average tax rate of 36.0% in 2023, compared with the OECD average of 24.9%. In other words, in Denmark the take-home pay of an average single worker, after tax and benefits, was 64.0% of their gross wage, compared with the OECD average of 75.1%."

https://www.oecd.org/tax/tax-policy/taxing-wages-denmark.pdf

randahl OP ,
@randahl@mastodon.social avatar

@EvilCartyen @xerge

Carsten is right. In fact we are both right. Carsten's number is the direct income tax rate (what your employer pays to the tax authorities).

My number includes the indirect taxes you pay after you have received your income — like VAT, car taxes, levies on energy, etc.

I wrote 50 percent from memory, but the actual number from the Ministry of Finance is 51.8 percent, and it is described here:

https://cepos.dk/abcepos-artikler/0246-en-almindelig-dansker-betaler-ca-50-pct-af-sin-loen-i-skatter-og-afgifter/

xerge ,
@xerge@mastodon.nl avatar

@randahl @EvilCartyen I think that is really high, but these kinds of numbers are hard to come by and difficult to compare. Especially since I'm no finance professional and often don't understand seemingly generic terms that have very specific meanings in that context, exactly where the numbers come from, and what is specifically included..

This is also interesting. Denmark is #2 here:

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

randahl OP ,
@randahl@mastodon.social avatar

@xerge @EvilCartyen

I feel it is very much a question of whether tax payers get value for their money. In Denmark we pay exceptionally high taxes, but I also feel we get tremendously good, free healthcare, excellent roads, etc.

The eldercare sucks though, because it is not part of the regional healthcare system, but financed by each city commune. This means some communes will lover their healthcare to prioritise all kinds of vanity projects.

xerge ,
@xerge@mastodon.nl avatar

@randahl @EvilCartyen Dutch taxes are lower, but I do pay about €2900 a year for health insurance and our healthcare system is average at best (and a joke according to some expats).

As usual you get what you pay for.

chakie ,
@chakie@toot.community avatar

@randahl 50% sounds a bit high for income tax. Not even Finland has that high tax. Or do you include all other indirect taxes on products and services that person might get for his/her salary?

randahl OP ,
@randahl@mastodon.social avatar

@chakie Yes, this is not the tax rate.

The exact number is 51.2 percent and it is this high because the calculation also includes VAT on your groceries and levies like the car tax.

This number is based on a calculation from the ministry of Finance.

jerry1970 ,
@jerry1970@venera.social avatar

@randahl @chakie Then it should not be called "income tax", that is causing confusion. Income tax is the tax that is based on your income directly before receiving it on your bank account.

randahl OP ,
@randahl@mastodon.social avatar

@jerry1970 You are right. I have corrected the post.

chakie ,
@chakie@toot.community avatar

@randahl Ack. I think my total tax rate is probably similar as the Nordic countries don’t differ that much.

EvilCartyen ,
@EvilCartyen@mstdn.dk avatar

@randahl

Imagine if we as private individuals only paid 22% tax on our profits after expenses :D

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