Denmark Promises Tax Cuts to Help Fight Labor Supply Shortages

“It will be easier and cheaper to run a company in Denmark,” the government said in a statement published on Tuesday, as part of its 2025 economic plan. The minority coalition of Prime Minister Lars Lokke Rasmussen expects to have a buffer in its budget of about 33.5 billion kroner by 2025 that can be spent mostly on tax cuts, with some of those funds also going toward other “growth initiatives” and security, according to the plan. The idea is to entice more people to work longer, also by providing incentives to delay retirement. Denmark lags behind Germany, Sweden and the U.K. in terms of the number of hours worked by its labour force. The government hopes its proposals will add as many as 60,000 people to the workforce by 2025. Denmark also raised its forecast for economic growth this year and predicted it will borrow less via bond markets as the public deficit shrinks. Gross domestic product is set to expand 1.7 percent this year. (Bloomberg)



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