Tax cuts will give more highly educated

The fact that many more young people would choose a higher education if taxes were not so high in Denmark has long been suspected and now this has been confirmed in an analysis by the OECD, which analyzed 19 countries from 1991 to 2005. This fall criticism field from the Social Democrats, SF and Labour Movement against taxation calculations in the field all the way to the ground.

Denmark stands to get one of the biggest gains among OECD Countries, if we tax charge. This is due to the tax burden in Denmark is the highest in the world in terms of overall marginal. A fall of just 5 percentage points in the top tax involves the training of 0.5% more graduates in the group 20-29 years. This would mean more than 12,000 more highly educated people in the labor market. But only the top tax at 15% in Denmark, which means that the removal of this will provide significantly more highly educated in Denmark - more 40,000 extra. Chief Economist at Cepos, Mads Lundby Hansen says the government's goal of Denmark as the world's leading knowledge society comes closer to realization when the top tax taken away in the upcoming tax reform. He goes on to say that one should not fire taxing knowledge, if you want a knowledge society. As it is now you will be more heavily taxed the better educated you are also compared to other countries around us. At the same time this OECD report that taxation's controversial report on self-financing holder. It consists in that possible. removing the top tax bracket will not only provide more manpower with more money for the highly paid, but also to our current welfare can be preserved by lowering the 63% tax to 43%. Social Democrats, SF and Labour Movement rejects the report as pure conjecture and politically commissioned work. However, as the OECD report emits virtually the same as taxation's report will likely be able to get more clout in the government's tax commission to make proposals for tax reform in February. One should not ignore that there are factors other than future salary into play in young people's choice of education, for example. interests and family traditions, but the economy also has its influence on the choice and the report from the OECD show a clear correlation between marginal tax rates and the desire to take a long training and this must be taken seriously.