Denmark has one of the highest levels of taxation in the world including one of the highest marginal tax rates in the world. High taxes are detrimental to individual choice, because it will
leave the individual dependent on government assistance and programs. High marginal tax rates are detrimental to growth and prosperity because it reduces the incentives to work.
A consequence of the high level of taxes, prohibition and other government attempts to influence the individuals behavior is not only the lack of choice, but also results in people having the
responsibility for their own lives taken away.
The more problems that policy makers claim to be common, national or international issues, and the more funding the government collects from its citizens, the less responsible the individual
will becomes for his or her own life. Instead it has been more common for the public to ask policy makers for help – in even the smallest of questions.
The combination of responsibility disenfranchisement and the increasing feeling of helplessness makes people less likely to voluntarily and on ones own accord help others in need. Instead it is
becoming more frequent to hear talk about societal problems, i.e. the call for government intervention.
The high level of taxation combined with a very generous level of welfare severely reduces the incentives to work.
Furthermore a system with various different welfare services and numerous ways to regulate the behavior of Danes leads to an ever increasing need for control to prevent “abuse” of
the system. The more regulations and redistribution of income the higher the need for government control.
At Copenhagen Institute we find that the expansion of the ”welfare state” and its responsibilities and the following increased burden of the productive parts of society and the
increasing control and distrust is counterproductive. And we do not find that this development increase welfare at large.
Denmark's welfare expansion has unfortunately become an inspiration to politicians world wide.
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