IMPLICATIONS OF THE RECENT DANISH INCOME- TAX REFORM

Despite the fact that the 1993 income tax reform in Denmark implies a fairly sharp change of the basic principles underlying capital income taxation, there has not been very much discussion of this change of di rection. The main aim of the present paper is to indicate this change and to stress a number of implications of the recent tax reform. With the recent tax reform Denmark has taken a first step to reduce the hea vy reliance on ordinary income taxation as far as labour income is con cerned The same is not true Of capital income taxation and capital inc ome tax rates in Denmark will remain very high compared to the Nordic and other countries.