AMERICAN REACTS To Why Is Denmark So Rich Despite Huge Taxes?

Subscribe to the channel!

ROAD TO 20,000 SUBSCRIBERS!

Comment what videos you want to react to next!

Got a request? Make it here!

I do NOT own the copyrights to this video so please go and check out the original video in the link below!
___________________________________

SUPPORT THE CHANNEL
Ways To Donate:
Cashapp:$Dart4D

Want to be a guest on my Podcast?

join our discord!

Follow me on Twitch!

Follow me on social media if you need daily motivation/inspiration!

*Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use. No copyright infringement intended. ALL RIGHTS BELONG TO THEIR RESPECTIVE OWNERS*

#americanreacts #denmark

TAGs
dar the traveler,dar the traveler reacts,reaction,american reacts,american reacts to denmark,Visualpolitik en,Visualeconomik en,denmark taxes,denmark,expat in denmark

[Foffer]

I could never imagine living in another country than DK. We are like the Hobbiton of the world, small country, we fat, we happy, we enjoy life and we care for our fellow country men!

[Real_MisterSir]

As someone who recently started their own business in Denmark, I absolutely love our system. Not only is it incredibly accommodating towards startups (Setup can be done from a pc in 15 minutes and there are no expenses associated), but also our system heavily incentivizes reinvestment of capital to fund growth of the company. It's a very linear system with minimal bureaucracy, ensuring as few steps as possible from thought to action to result.

In reality, how it works is that companies pay little tax themselves, which instead allows them to recruit more and better educated people for higher wages, who then pay tax off of their salary, or buy more supplies and machinery, which is already taxed through manufacturing and sales process. This way both the government and the job-and-growth providers benefit from the same money, and the workers benefit from having more opportunities and fair wages that don't prioritize "rat-racing" but instead a healthy work life balance.

Of course this is a general view and there certainly are things that could be further optimized, and some things have regressed even, but overall it's a very well-oiled machine that just works.
I would say, trust factor is probably the main key that enables the level of efficiency we have. Trust in our government systems, our labor unions, and each other. People aren't fighting to step over each other to reach high (in general), I like to call it cooperative competition.

[Cirkelo]

That is solidarity. It is a cultural thing. It is instilled in us danes from childhood. You give what you can, and you receive what you need. The rest is your life. It is linked to "janteloven" and the social nature of the danish economy and society. The majority of the danish economy through the industrial age was co-op modelled.
Solidarity is actually one of the few things we danes do really good. I think most of us feels satisfied knowing, we gave what we could, and we will receive what we need, if we need it.

[MrLarsgren]

glad you liked it. also weekly work hrs is a bit short of 40 hrs. way different than us numbers.
add to that Overtime pay weekdays: Supplement of 50% for the first three hours per day. After this, the supplement increases to 100%. The hour immediately before working time is paid with a 50% overtime supplement. weekends its 100% or more depending what you demand and they agree to.
and they cant force you to do overtime.. its all up to you.

[ane-louisestampe]

We want a country where few have too little, and fewer too much.
N.F.S. Grundtvig, one of the founders of Danish democracy.

[tonzthc]

i can think of one important factor they dont mention, we have very good international trade relations in general, importing and exporting is 2nd hand nature to denmark, about 10% of the workforce works in maritime industry or a subsidiary thereof

[DullyDust]

One thing that sets Denmark apart from the States is probably that we enjoy our work for the most part, at least there's a much higher chance of feeling appreciated in the work space compared to the States where people tend to say "I work to live and what they pay me is mine because I suffered for this money!"

[finnjensendk]

Finn from DK. It is ridiculousness of being so fixated on the tax rate.
I have an average income and went back 4 years on my tax return. I have not paid more than 39% in income tax on the basis of tax deductions. Everyone in Denmark has, for example, a personal deduction of DKK 46, 000/year. before tax if they live alone + Employment deduction + driving to work deduction and many other options for deductions.
All in all, you end up with a much lower tax rate than you would think. Yes, it varies, but it is relative to income and deductions.
Its all a narrative. Next time, ask about the income and what is left when you have paid the tax. That is a more accurate calculation.

[janolsen]

Small ass country we are. But there is a small differents in kommune skat. Remember you only pay the high tax 55-60 procent of the money after you earn about 600, 000 kr. so the firrst money you earn there is a lower tax.

[Chrivs]

Feel like that in USA if you Work hard. You make your Boss/Owners rich (;
Good am from Denmark ^^

[jh]

Answering your question at 7 minutes. There is 98 municipalities in Denmark and there is a few percent difference in municipality taxation, but the major taxes like personal income, VAT, corporate are mostly the same regardless of where you are located. There is one government institution called skat that collects taxes from everyone, and it then gives 85-90% of it back to the municipality where it was claimed from. The municipalities also negotiate a complicated allocation formula where the municipalities either give or receive funding from other municipalities because of road network, regional hospitals, universities, special welfare

So in short. To see where my taxes is spent, I basically just need to walk through the city with my eyes open. The vast majority is spent locally. Despite taxation being centralized, the spending is decentralized and managed by the municipalities and local city council.

[jesperrasksuldrup]

And then you still have free schools, universities, free hospitals, private doctors. etc

[traver]

Denmark is a small country so the best thing you can do is to compare it wwith a state in the US. But we do have a lot of municipalities and the taxes in them differs from one to another. But not a lot. Also we have federal taxes. Those are the same for everyone.

The guy in the video is very obsessed with numbers. Fair enough. But try another approach. You have two football teams. Team A says "you will have to find your own doctors and coaches and you pay them yourself". Team B says "We will provide every medical staff you need and every coaches you need. Free of charge". The latter one is normal in American sports. If you want to win that is the way to go. This is equivalent for an worker having free education and healthcare. Having free education and healthcare makes your country able to compete better on a global scale. Better chance of winning ;)

[anettekruse]

We don’t view the state as an adversary, but rather a common savingsaccount. The needy get more from the account than people who do well. “The stronger shoulders carry the heaviest weight” If that can be interpreted as communism, well then so be it. ❤️

[antonlb]

We would be the richest country if we didn’t sell all our oil to Norway (before we knew there was oil there) 😡

[NATIK]

This is why it's stupid listening to American politicians talking about Denmark. USA fundamentally thinks about taxes in a way that is incompatible with the Danish way of thinking about taxes.

Denmark has no minimum wage, it has few government mandated benefits for workers as paid by corporations. Instead Denmark has free education, free healthcare, good unemployment benefits paid by the state, etc. Basically you can point at one portion of the Danish economy and go "look they are so liberal, no minimum wage, we should do that!" and you can point at another and go "they have high wages on jobs we have minimum wage on, we need to up the minimum to similar amounts!" and both sides are wrong. Denmark has good wages because of a complex system of unions and wage negotiation factors, not because of minimum wage law, and mirroring Denmark in either direction without this system is pure idiocy.

Basically Denmark choose to have the government shoulder the uncertainties, the big risks, and to find the money for this where the least economic slowdown occurs as a result. The government guarantees that everyone will be okay no matter what. The business won't be hamstrung by bureaucratic bullshit, and won't be subject to red tape and binding itself into strong obligations to workers, conversely the worker will be supported no matter what happens. The worker will have access to education if they need to change careers, they will have access to a livable income regardless of events, and they will never lose access to healthcare, childcare, education for children, etc, etc.

USA cannot adopt Danish law unless the cultural mindset changes a lot. Instead of considering government investment theft, it should be considered a way to build up the foundations upon which everyone stands. The government sets the bar, and everyone pulls themselves up from there. If the bar is set too low then people can't pull themselves up because they simply lack the resources to do so, and if it is set too high then people cannot pull themselves higher and it all collapse as the bar itself cannot be held up.

Support and financial aid to the poor strengthens the economy by providing a better qualified, healthy and high spending workforce increasing the amount of money flowing through the system, enriching everyone from bottom to top.

Support and removing barriers for corporations provide more opportunities for both job creators and job takers to excel and generate growth and profit, again enriching everyone from top to bottom.

Balancing both is vital, and it can be done in a myriad of ways. The Danish approach is not easy to copy, it has been built and refined over many years, but the central idea of how to lessen barriers while ensuring everyone access to all their potential can be learned from regardless even if one has to adapt it for the specific nation or culture.

[stiglarsson]

A bit late but, focusing on "nominal/teoretical taxes", dont explain anything!
Its still this in Nordic countries, high nominal taxes, but nobody tells about all the "reductions/deductions" buildt in to our taxe system! And there is seldome any talk about all the "paybacks", its normal get money back, and tax reductions, like "child benefits payd to parents, free school, free lunch at school, higly subsidies kindergarten, a cap on healtcare/medical bill!
And ones child get payd to go to university!

[Kboman]

I don't think the world would have very many first responders if everyone saw it as an insurmountable burden to help fellow countrymen that weren't as lucky. Is it lazy to lose your ability to work because of someone else driving drunk?

[ane-louisestampe]

The tax you pay to your local council (kommuneskat) varies from 22.8% to 26.3%

[lars_]

If you want a visa we can get married or smth