Denmark is planning to cut its corporate tax rate to 22% from the current level of 28% in a bid to increase its competitiveness.
The Tax Commission charged with reforming the Danish tax system has also roposed that taxes on labour be cut significantly. It says that in the longer term this tax reform could encourage Danes to work more, train more and generally improve their skills base. The goal is to make Denmark more competitive in the battle to attract good jobs and companies.
In the short term, the reform could provide a boost to lacklustre domes-tic consumption – perhaps making the current crisis less deep.