User:StoneAlchemist/Taxation in Denmark

The article currently lacks exposition concerning the effects of the tax policy and public opinion towards it. The history of the tax policy is also not addressed in the article.

Overview
The types and levels of taxation in Denmark have changed dramatically since the state's inception. In the sixteenth century, Denmark primarily obtained state income through taxes excised on feudal Demesne lands and the Sound Dues, which required foreign ships to pay a toll when passing through the Øresund bordering Denmark. In fact, the Dues comprised two-thirds of Denmark's tax revenue throughout the sixteenth and seventeenth centuries. The costs of warfare, such as those of the Thirty Years' War, were further fulfilled by Denmark's heavily agricultural economy. In later conflicts such as the Scanian War and the Great Northern War, however, Denmark ceded much of its territory, resulting in monetary losses that prompted higher tax rates and the introduction of an initially small income tax. Massive population growth resulted in expansion of agriculture and consequently an expansion of taxes gained from tariffs on exports and wheat sales. By 1897, Denmark's income tax encompassed 15.00% of the state's total revenue, far surpassing any other European country at the time. From 1897 to the present, Denmark continued to boast exceptionally high income tax rates, never dropping below the top five countries in Europe in terms of percentage revenue earned from income taxes. Following World War II, as with many other countries, Denmark began to enact several social welfare programs, including aid for the sick and the unemployed. These, along with expansion of the public sector (schools, teachers, etc.) contributed to the income tax being a staple of Denmark's tax revenue.

Changes in the 20th and 21st Centuries
The exact form of income tax has varied through the past century. Between 1903 and 1966, income tax was levied only on "assessed" income, which did not include personal taxes that were spent on other areas, such as to the church. After 1966, income tax was changed to be levied on taxable income, which included personal taxes spent on other areas and later also included income received from stocks and interest. In recent years, public sentiment towards taxes has leaned towards limiting the welfare state and consequently the income tax. In 2001, a "tax freeze" that prevented the further increase of taxes was administered by the then liberal-conservative government of Denmark. The tax freeze could only be waived in particular times of crisis, and a tax could only be increased at the expense of a different form of tax. Furthermore, the Danish Tax Reform of 2010 gradually cut taxes "to increase labour supply in the medium to long term and at same time contribute to soften the effects of the global economic crises in the short run." The tax cuts impacted the high, middle, and low classes, and resulted in a net cut of 30 billion DKK between 2010 and 2019. Despite these policies, income taxes have stabilized at providing around 50% of Denmark's total revenue since 1990. According to the World Happiness Report, Denmark ranks among the top two in terms of happiness, indicating a general contentedness with the state's welfare state and the benefits provided. The World Happiness Report also states that happiness is correlated to social equality. The official Denmark website remarks that "most Danes will tell you that they are happy to pay taxes because they can see what they get in return," including free tuition, healthcare, and social security.