TAXATION OF THE RENTAL VALUE OF OWNER-OCC UPIED HOUSES IN DENMARK

The implementation of income taxation of the rental value of owner-occ upied apartments is a political problem in Denmark because of the comp etition among parties to get hold of the marginal voters living in own er-occupied houses. The transition from a direct income tax to a direc t expenditure tax involves some opportunities to implement a correct t ax of owner-occupied houses and apartments without hampering the exist ing owners. This is a consequence of the need to compensate the tax pa yers for the income tax already paid on savings and investments in the ir houses and apartments.