IN NUMBERS: Who will gain or lose from Denmark's tax reform?
Who is likely to win or lose from the government's plan to extend its tax reform plans, leaked to the press earlier this week? The Danish free-market think tank Cepos has crunched some of the numbers.
The Børsen newspaper reported on Monday that the government is now planning to cut taxes by a total of 6.7 billion kroner, a significant increase on the 5bn kroner the three coalition parties agreed when they formed the government last year.
The Center for Political Studies (Cepos) estimates that only those eligible for the new so-called 'millionaire's tax' or top top-skat, are likely to end up paying more tax.
A top director whose family has an income of more than 5.7 million kroner a year is likely to have to pay some 67,000 kroner extra in tax a year, the think tank's acting chief economist, Jørgen Sloth, estimates.
But even families where each partner earns more than a million kroner a year can still expect a tax cut, he believes, with a family with a combined income of 2,053,600 kroner likely to see their tax bill lowered by 13,800 kroner a year.
What are the changes?
Among other things, the new plan is expected to raise the employment allowance from 10.65 percent to 12.75 percent, with the maximum employment allowance raised to 54,200 kroner from 45,600 kroner today.
The government will also introduce a new intermediate tax, or mellemskat, of 7.5 percent for incomes between 618,400 kroner and 750,000 kroner a year.
Incomes between 750,000 and 2.5 million will be taxed at the 15 percent topskat rate, but any incomes above 2.5m will be taxed an additional 5 percent, taking the rate to 20 percent.
Sloth described the scheme to the Ritzau news wire as a "nice rose with a very big thorn in it".
"It is good that working Danes get a tax break and excellent that the top tax is reduced. But it is completely unnecessary to introduce the new top-topskat," he said.
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The Børsen newspaper reported on Monday that the government is now planning to cut taxes by a total of 6.7 billion kroner, a significant increase on the 5bn kroner the three coalition parties agreed when they formed the government last year.
The Center for Political Studies (Cepos) estimates that only those eligible for the new so-called 'millionaire's tax' or top top-skat, are likely to end up paying more tax.
A top director whose family has an income of more than 5.7 million kroner a year is likely to have to pay some 67,000 kroner extra in tax a year, the think tank's acting chief economist, Jørgen Sloth, estimates.
But even families where each partner earns more than a million kroner a year can still expect a tax cut, he believes, with a family with a combined income of 2,053,600 kroner likely to see their tax bill lowered by 13,800 kroner a year.
What are the changes?
Among other things, the new plan is expected to raise the employment allowance from 10.65 percent to 12.75 percent, with the maximum employment allowance raised to 54,200 kroner from 45,600 kroner today.
The government will also introduce a new intermediate tax, or mellemskat, of 7.5 percent for incomes between 618,400 kroner and 750,000 kroner a year.
Incomes between 750,000 and 2.5 million will be taxed at the 15 percent topskat rate, but any incomes above 2.5m will be taxed an additional 5 percent, taking the rate to 20 percent.
Sloth described the scheme to the Ritzau news wire as a "nice rose with a very big thorn in it".
"It is good that working Danes get a tax break and excellent that the top tax is reduced. But it is completely unnecessary to introduce the new top-topskat," he said.
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