The great Danish tax paradox
Denmark has defied the economic law of gravity. Despite a high tax level, the country is praised as one of the world’s most competitive. Perhaps tax is not a hindrance to a strong level of competitiveness after all, but an important condition for it, because it pressurizes Danish businesses to deliver more and be extra-effective in order to perform globally. Even though income taxes are the highest in the world, the Danes have not revolted over tax for the last three decades. They want to pay taxes in order to receive welfare services such as health, education and care for the elderly, according to Monday Morning’s voter poll.