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According to the OECD, Denmark (26.4 percent), Norway (19.7 percent), and Sweden (22.1 percent) all raise a high amount of tax revenue as a percent of GDP from individual income taxes and payroll taxes. This is compared to the 15 percent of GDP raised by the United States through its individual income taxes and payroll taxes for instance.
In order to raise a lot of income tax revenue, income tax rates in Scandinavian countries are rather high except for that of Norway. Denmark's top marginal effective income tax rate is 60.4 percent. Sweden's is 56.4 percent. Norway's top marginal tax rate is 39 percent.
Scandinavian income taxes raise a lot of revenue because they are actually considered flat. In other words, they tax most people at high rates, not just the high-income taxpayers. The top marginal tax rate of 60 percent in Denmark applies to all income over 1.2 times the average income in Denmark.
Sweden and Norway have similarly flat income tax systems. Sweden's top marginal tax rate of 56.9 percent applies to all income over 1.5 times the average income in Sweden. Norway's top marginal tax rate of 39 percent applies to all income over 1.6 times the average Norwegian income.
What else can I help you with?
Why are taxes high in Scandinavian countries?
Social Services and Nanny States
Why are taxes in Scandinavian countries so high?
Social Services and Nanny States
Where is the highest taxes?
In the Scandinavian countries, first of which is the Denmark.
Why do the Scandinavian countries have higher taxes?
Scandinavian countries have higher taxes primarily to fund their extensive welfare systems, which provide universal healthcare, free education, and generous social security benefits. These high levels of taxation are viewed as a means to promote social equity and ensure a high standard of living for all citizens. Additionally, the tax revenue supports robust public services and infrastructure, contributing to overall economic stability and growth. The public generally supports these higher taxes due to the tangible benefits they receive in return.
What economic system stresses the use of high taxes in order to pay for public services?
Socialism, at least in its Scandinavian form, stresses the use of high taxes in order to pay for public services.
Is it true that the Scandinavian countries are the southernmost countries in Europe?
Quite the opposite; Scandinavian countries are the most northern.
What are five Scandinavian countries?
The five Scandinavian countries are Denmark, Sweden, Norway, Iceland and Finland.
What is the smallest of the Scandinavian countries?
Denmark is the smallest of the Scandinavian countries in terms of land area and population.
What Scandinavian countries start with N?
Norway is a Scandinavian country.
Need a list of Scandinavian countries?
Scandinavian countries: Denmark, Norway, Sweden.I am putting the definition of Nordic countries here because many people confuse the Scandinavian countries and the Nordic countries.Nordic countries: Denmark, Norway, Sweden, Iceland, Finland.
What is Scandinavian visa?
schengen visa is required for travelling to Scandinavian countries ...
What are some of the Scandinavian religions?
In most Scandinavian countries Lutheranism is dominant.
