According to latest addition of Taxation Trends in the European Union, Denmark’s government in 2019 raised 46.1 percent of GDP in tax revenues, with a significant 1.8 percent rise that year pushing it ahead of France, which saw revenues fall 0-9 percent, on 45.5 percent.
According to the study, Denmark in 2021 also has the highest top rate of income tax at 55.9 percent, well ahead of the runner-up, Greece, on 54 percent, Belgium on 53 percent and Sweden on 52.3 percent.
“The largest gains were seen in Cyprus and Denmark, the largest decreases were registered in Belgium and in France and Sweden,” the authors wrote.
Denmark also has the highest share of direct taxes, with taxes on goods and services representing a full 66.5% of revenues.
In addition, most of Denmark’s welfare spending is financed out of general taxation.