So I keep seeing these ridiculous posts on Facebook about Denmark being this great place to live. They get to have 33 hour work weeks. They have a $25 minimum wage. They have free college. They have free health care. One thing I have learned in my very long life as an adult. Nothing is free. Bologna. Someone is paying for the free college and health care.
So I did some research and comparison:
Federal income tax there is a sliding scale that starts at 8% and can go as high as 57%. That’s not even counting local income tax which can be as high as 27.8%. Thankfully, in order to help their poor citizens, there is a cap on all income tax. The max you will pay is 51.5%.
Oh, thank goodness! I was beginning to wonder if I would get any of my $25 minimum wage. Now, I will get to make $7 an hour. Now where did I hear that amount before? Hmm… Minimum wage here in the USA has been $7.25 or higher since 2009, so it’s hasn’t been from the USA. I guess I haven’t heard it from anywhere in my area.
As for USA Income Tax:
Federal Income Tax has seven tiers. In order to get anywhere near Denmark’s taxation, you have to make around what Bill Gates makes and be taxed at 39.6%. Many individual states do have their own income taxes, with California coming in at 13.3%, nearly 1/2 as much as the local tax of Denmark.
Well, I guess if you live in CA, and make as much money as Bill Gates, you have Denmark beat on your taxation. However, you have the choice of voting in republicans who can lower your taxation, something Californian’s clearly don’t seem to understand. Instead they want to kill their farms to save the Smelt (a 2-3″ fish that lives in the Delta), thereby killing their Economy and State.
Now let’s talk Sales Tax.
Sales tax is 24.7% in Denmark. Surely I can find one State that has sales tax that is that high, right? First off, we have no Federal Sales Tax, so this helps us. Secondly, the highest sales tax comes from Tennessee at 9.45%, less that half of Denmark’s. Do you still want to live there?
I know, they will beat us on their Property Tax, and that will talk me into wanting to move to Denmark! Well, actually Denmark doesn’t have property tax. Instead they have Land Value Tax. Land Value Tax is actually the worst kind of tax because it’s not based on what buildings are on the property, but rather what the land is like. People who are rich get taxed more because their property is usually larger. Pennsylvania is a Land Value Tax State. The State with the largest tax, though, is New Jersey where the average person pays $3,939. The highest vehicle registration tax is Rhode Island pays $1,133.
Oh, did I mention all the other taxes? The Church tax 1.5% and the VAT tax 25% (which is an added tax from the European Union).
Well, at least their college is free.