Danish Personal Tax Policy is Uncompetitive
Operating in the highest taxed country in the world just doesn’t make good business sense.
Denmark has lost the equivalent of 30,000 highly educated workers due to the record high Danish income tax. – Confederation of Danish Industries (January 2008)
Globalization is forcing nations to play a greater role in enhancing their global attractiveness. Incentive policies designed to attract foreign investment, skilled labor and research experts, as well as rewarding higher education degree completion, are crucial to strengthening competitive advantage.
In this regard, Denmark’s high tax rate has contributed to the reduction in the supply of highly skilled and educated human capital. In a Confederation of Danish Industries’ publication – “Global Benchmark Report 2009” – from April 2009, Denmark ranked 24nd when compared against 29 OECD countries as an attractive destination for foreign highly skilled labor.
At a time when companies are having difficulties filling essential positions and the war for talent has gone global, Denmark does not offer a competitive environment. Looking inward, Denmark’s tax policy hinders the incentive to work, acquire skills and complete a higher education.
AmCham Denmark believes that to ensure the supply of needed human capital in the long term, Denmark must set down a plan with clear steps to reduce the marginal tax rate, value added tax and other taxes on goods and services.
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