-
This report discusses how tax structures can best be designed to support GDP per capita growth. The analysis suggests a tax and economic growth ranking order according to which corporate taxes are the most harmful type of tax for economic growth, followed by personal income taxes and then consumption taxes, with recurrent taxes on immovable residential property being the least harmful tax. A revenue-neutral tax reform that shifts the balance of taxation more toward consumption and recurrent residential property taxes could thus strengthen the growth of output over the medium term.
-
-
-
-
-
In the spring of 2009 the Danish Parliament adopted a major tax reform with the main goal of reducing the relatively high top marginal personal income tax rates. The reform is fully financed by offsetting tax increases and it is expected that both tax cuts and tax increases will have positive structural effects, to a wide extent, on labour supply, savings, the allocation of capital and the environment. It is estimated that the Gini coefficient will increase by 0.45 as a result of the tax reform.
-