If there is one major factor that moves voters all around the globe it is taxes... Nothing else can mobilize people across social status and belief as ones belief when it comes to taxes.

In little Denmark it is always a struggle, mainly because our social structure is as costly as it is. A lot of services is offered from the public system that people in other countries have to pay for. These services are essential for an optimal social structure and development of a country with only 5 million inhabitants with limited human resources. But there are a lot of spin gathered around tax legislation. Much of these high classed spin can be traced back to the spin doctors at either DI (Dansk Industry/Danish House of Industries) or highly placed bankers. Their agenda always have been and always will be to mislead the middle and lower class into believing the necessity of low taxes on highly overrated wages and bonuses. Lets face it - the majority of inhabitants in all known societies have a low-to-middle income. Only a minor percentage have high or extremely high wages. This simply put means that the political tax scenario that favors wealthy people over poor people could forcefully be changed overnight into a more fair and pragmatic system, taking from the rich and give to the poor so to speak. In theory politicians could invoke laws that would divide the riches of any country evenly amongst all inhabitants. But we are all mislead into believing this isn’t what we want.

Myth 1: Generally lower taxes will make us work more

Is it really true that we refrain from working all that we can, because we don’t get enough out of it because of the taxes that we pay? When people are asked, the majority answers that they too would work more if they got more out of it. This is in fact a strange belief. Since most people either work as much as they can, or as little they can afford. The first group don’t have much extra time they can put in, and the second group will have to work less to afford their living.

This can be traced back to the two major stakeholder:
1. The rich people who don’t have to work more, but just will get an added monthly surplus on their private bank roll.
2. The industry leaders who are well aware that payroll negotiations always will come down to two figures: Income after tax compared to living expenses.

It is more than likely that lower taxes will result in more money for the rich, and lower wages for the rest of us! But it wont generate more working hours, or better workers.

Myth 2: High (income) tax rates will make industry growth stagnate
This myth has to do with the general blur between income taxes and the company taxation. Yes, it is true that high company taxes will make some industry choose other lower taxed countries as their home. However this postulate is mostly used regarding income tax on higher incomes. It has become a rich people mantra that the high income tax rates (DK: Topskat) is hindering growth for danish industry! How high tax rates on high incomes will make industry grow stagnate is an interesting statement, because it again originates from bank leader, rich people and business leaders, who pretty obviously would like to pay lower income taxes. Their reasons are obvious, however false. Understand that the wages a business leader is payed in salary is taken/comes from the business surplus. And the business surplus is the money the company use for investment, development and expansion! The millions poured into greedy leader pockets around the globe wont do the companies and its regular worker much good, except in keeping the leader with the company to earn his oversized wage for yet another year!

A company’s growth is determined by its surplus at the end of the year. The COMPANY taxation is what determines the size of this surplus. The INCOME taxes that the business leader pays of his privately held and spend economy have little if any effect on his company’s ability to invest or expand etc. On the contrary it can be claimed that high income taxes will actually make many smaller companies invest a higher percentage of their surplus in the company instead of paying out the surplus in wages to their owners.

For the general worker heavy taxation on the top incomes are likely to actually strengthen the companies they work for instead of ending up in their bosses mansion...

Opinion: High “unfair” top income tax rates are necessary for a fair society to evolve...
Who needs to earn more than 100 mio. danish kroner (dkr) a year? The answer is obviously NO ONE!

Couldn’t some of these money be better invested into the company where these high earner works? Yes indeed! It may seem unfair that the rich high yielding people should be taxed higher, but it only makes sense. And we don’t talk about the average to higher middle class who earns 500.000-1.000.000 annually. The top income tax should be further divided. There is a middle group that should be given tax deduction by raising the amount of money one can earn before being taxed substantially. But, there is also a group where a lot of these money could be regained. Somewhere between 1 million (83.000 dkr a month) and 1,5 million (125.000 dkr) the taxes should start to climb substantially until a point where it is close to 100%. It is my belief that no one needs or deserves a salary over 5 million a year. (416.000) a month which is in itself a perverse amount of money. This would put an end to redicious leader spending, and lead these wasted resources into development instead. We don’t need richer leaders, we need more development and expansion in their companies.

Do the math: Each year a fictive bank with just ONE leader at a cost of 100.000.000, has 100.000.000 less for expansion and investment. If a bank have ONE such leader for ten year that makes 1 BILLION kroner. In comparison the newly negotiated “investment package” is 100 billions, which translate to what 100 of those fictive bank leaders have been payed in bonus for the last ten years in total.

And this is just a fictive example. We know for a fact that the reality grocely outmatches any of these figures...

My final note is this: When liberal politicians needs to justify their favoritism towards overpaid leaders in their tax packages etc, their reasoning always comes down to this: In order to acquire professional and well qualified leaders we need to secure them huge amounts of cash in their pockets.
Strangely enough this isn’t quite the story when salaries for public servants is decided by our liberal government. But hey, they only lead small and unimportant institutions like The Army, The public Schools, Health care system and such unimportant way too costly operations...