Okay. Let me mock Denmark. According to Trading Economics, the Personal Income Tax Rate in Denmark is currently 55.60 percent, while it “averaged 61.40 percent from 1995 until 2014, reaching an all time high of 65.90 percent in 1997 and a record low of 55.40 percent in 2010.”
So, that wonderful wage of $25 just went to $8.75 to $11.25. While your liberal friend might be quick to say that’s still higher than the United States’ minimum wage, they haven’t factored in a few more of those pesky facts.
Denmark’s sales tax is 25%. In the United States, sales tax varies by state, with 5 states having no sales tax at all, while California has the highest sales tax rate of 7.5%. So, with the worst case scenario being California, you’d still only be paying less than a third of the sales tax you’d pay in Denmark.
That $25 wage that looked so good until it was cut in more than half with the income tax, just got you even less. But Denmark isn’t done there.
Consumer Prices in Denmark are 15.88% higher than in United States, while consumer prices including rent are 4.78% higher. But the real hurt on you wallet is in restaurant prices, which are 43.93% higher than the United States. Don’t think you’ll save money eating at home either, because grocery prices are also higher. To top it off, clothing prices are four times that of the price in the U.S.
If you are in the market for a new car, you are in for quite the shocker since Denmark has a 180% car tax, meaning that $20,000 sedan will cost you $50,000 right off the bat.
Although their wage is higher, Danes don’t have more disposable income.
Average monthly disposable salary for Danes is about the same as the United States. Once increased cost for goods, necessities, and entertainment, is factored in the average American is more “well off” than the average Dane.