Danish business organisation DI: Top tax rate costing country billions

Abolishing the additional tax on high earners would increase the supply of labour and GDP, according to study

The business interest organisation Dansk Industri (DI) has elaborated how much better off Denmark would be if the top tax rate were lowered or abolished, Berlingske Business reports.

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

Would boost GDP
The study found that doing away with the additional top tax rate of 15 percent would increase the supply of labour by the equivalent of 16,000 people working full-time and boost the gross domestic product (GDP) by 15 billion kroner.

This projection is on the basis that abolishing the top tax rate would encourage top tax payers to work an average of 1.7 percent more, more people to go after high-paying jobs and fewer highly-educated people to leave the country.

The tax revenue from the top tax is 15.4 billion kroner this year and is expected to fall to 13.8 billion kroner next year as a result of the threshold being raised gradually as part of a 2012 tax reform.

This lost revenue, the study claims, would be offset by as much as 7.3 billion kroner in sales taxes from a rise in consumption associated with people being better off and more income tax at the lower rate as a result of the increased supply of labour.




  • Today is 10 years from Copenhagen terrorist attack

    Today is 10 years from Copenhagen terrorist attack

    On February 14 and 15, the last terrorist attack took place in Denmark. Another episode occurred in 2022, but in that case, there was no political motive behind it

  • Enter Christiania: how the Freetown works

    Enter Christiania: how the Freetown works

    We all know Christiania and have been there at least once. But how does the Freetown work? How are decisions made? Can a person move there? Is there rent or bills to pay? British journalist Dave Wood wrote a reportage on Christiania for The Copenhagen Post.

  • The struggles of Asian women in Denmark’s labour market

    The struggles of Asian women in Denmark’s labour market

    Isha Thapa unfolds her research “An Analysis on the Inclusivity and Integration of South Asian Women in High-Skilled Jobs within the Danish Labor Market”. Thapa describes the systemic and social challenges these women face, ranging from barriers in social capital to cultural integration.

  • Parents in Denmark reject social media monitoring 

    Parents in Denmark reject social media monitoring 

    Most parents in Denmark reject using social media parental controls despite knowing about them. A new study questions the effectiveness of these tools in ensuring children’s online safety.

  • Analysis: we need a different education system for international children in Denmark

    Analysis: we need a different education system for international children in Denmark

    Data analyst Kelly Draper Rasmussen highlights that Denmark sees peaks in international migration during early childhood and high school years. However, with only one international education option, many families are forced to leave to secure different opportunities for their children.

  • Danish Refugee Council to lay off up to 2,000 staff

    Danish Refugee Council to lay off up to 2,000 staff

    After the anticipation from The Copenhagen Post, a press release by DRC has confirmed the plan to lay off thousands of employees in response to the recent halt of foreign aid spending by the Trump administration.