Posted On May 20, 2018
You’re a citizen of one of the countries in the developed world with the highest tax rate. Close to half of your earnings can go to the government while the cost of living is one of the highest in the world too. You’re situated in northern Europe, where cold winters are the norm and summers offer some respite. You also pay on of the highest tax rates in Europe and the world.
Tax for the highest earners can reach up to 60%, the highest top personal income tax for all OECD countries. Neighbouring nations, Sweden and Norway have upper income tax rates of 56 and 39% respectively. You comfortably pay more tax than other EU nations.
You’re from Denmark but you’re happy, why?
Well, the main reason is the government reinvest you, their citizens. No matter what background you come from. Government funded education is free to all while you will also have the chance to go to university and study, just like those from a higher social class to you. Universities in Denmark are free of charge with no registration fee. While students who attend receive €900 per month from the state, these are the sorts of figures that most economies in the world couldn’t sustain.
When you reach employment, the benefits don’t stop. While as a citizen of the US you are entitled to ten days paid annual leave, or as somebody employed in Australia, 21 days, those working in Denmark will have 5 weeks paid vacation. And if you have a baby? You can receive up to a year parental leave and up to 32 weeks of which can be supported by the state.
Finally, with the help of high taxation, Denmark’s policy makers have created a job market in which employers, employees and even those who are unemployed are relatively happy. It offers the chance for those in employment to upskill while those who are unemployed can get help from the state in job searching. What’s not to like?
Well besides the tax rates, nothing. Denmark has low crime rates, while corruption Is nearly non-existent. It’s not just Denmark whose citizens are happy pay high taxes. Sweden also has a high rate of agreement with the tax rate as healthcare and public education are of a high standard.
So it’s not just those funnelling funds through offshore tax havens that are happy, paying taxes can be just as rewarding.