Dansk Industri proposing to remove top tax bracket and increase pension age faster

The business organisation believes it would lead to more jobs and save billions on welfare

Lucie Rychla

Sep 22, 2015

Dansk Industri (the Confederation of Danish Industry) recommends that the Venstre-government should remove the top tax bracket and increase the age of retirement earlier than planned, reports Børsen.

DI claims these changes would lead to the further employment of an extra 135,000 people over the next 10 years and provide a windfall of 115 billion kroner to the welfare system.

Incentives for people on welfare
“Denmark is on the right track, but in order for society to stay open and prosperous , we have to implement many reforms,” stated Karsten Dybvad, the CEO of Dansk Industri.

According to DI’s report, which was released today, removing the top tax bracket would provide people on welfare with a financial incentive to seek a job.

In addition to the suggested labour market reforms, DI recommends investing a further 10.5 billion kroner into education, research and infrastructure.

According to the retirement reform from 2011, the pension age will increase to 67 in 2022.

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