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09-Apr-2008
Government finances have improved significantly over the past years on account of both cyclically higher revenues and structural expenditure restraint. In order to preserve these achievements for the longer term, the government should consider replacing the fiscal rule currently enshrined in the constitution, which has proved to be ineffective in preventing an increase in the debt level. Safeguarding future tax receipts is also a challenge and the implemented corporate tax reform will be helpful in this respect.
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19-Feb-2008
Four out of ten full-time employed face a marginal tax wedge of more than 70% resulting from labour contributions plus income and consumption taxes combined. Tax reform could mitigate an ageing-related decline in hours worked, and contribute to fiscal sustainability, this report argues. But it requires that cuts focus on the worst distortions and are appropriately financed.
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19-Feb-2008
The Danish pension system is well-developed and almost unique in the OECD. This report suggests that there may be scope to increase choice and flexibility in the pension system. However, the key policy challenge is to reform capital taxation outside pension savings.
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