Lower corporate tax etc. increases wealth by DKK25½bn
The higher the corporate tax, the less money for companies to finance new machines, product developments or other investments. DI suggests that the corporate tax is aligned with the countries surrounding us to avoid having it as an undue impediment to the competitiveness of Danish companies. We propose a gradual reduction of corporate tax to a level of 13 per cent in 2025. The corporate tax reduction can increase wealth by almost DKK25bn in 2025, of which a smaller part is due to higher employment accounted for in the section ‘More jobs in private companies’. DI also aims to reduce or eliminate many indirect taxes for the business sector and we suggest that the Parliament repeals the constraint on exploiting deficits, removes the tax at source for foreign investors and much more.
Investments in research, education, infrastructure and digitization increase wealth by DKK7bn
We must ensure that Danish companies can compete internationally, now and in the future. They must be able to develop new, competitive products and have access to highly skilled employees. Therefore, DI suggests that we raise research expenditures from 1 to 1½ per cent of GDP, and that we allocate more money to education.
DI proposes that we invest in new and improved infrastructure to make it easier for companies to transport goods and for employees to go to work. This strengthens the ability of the companies to compete and create growth.
Furthermore, there are great gains to realize from digitizing the public administration. DI wishes to increase investments in infrastructure and digitization by DKK30bn over the next seven years.
Less red tape, lower taxes and an efficient utilities sector increase wealth by DKK4bn
It is given that we need rules to govern companies. Sometimes, however, the decisions made at Christiansborg and in Bruxelles seem out of touch with the daily life on the workplace. Many requirements are overly complex, and sometimes the administrative handling of cases is too slow. DI suggests relieving the burden on companies by DKK6bn in 2025. Thereby, companies can spend their resources on developing and selling products instead.
DI also strives to reduce some of the taxes and other politically imposed expenses that make it difficult for companies to run a thriving business. It is essential to the competitiveness of Danish companies that there are no extraordinary costs associated with running a business in Denmark as compared to neighbouring countries.
All companies need energy and water. Most companies also need to dispose of waste. Thus, a stable and cost-efficient utilities sector is fundamental to growth, employment and productivity. We have come a long way with the electricity sector. DI works to ensure that the water and sewage sectors can achieve a similar potential.
Lower income- and consumption taxes increase productivity by DKK15bn.
DI proposes an elimination of the maximum cap on the earned income tax credit and the top tax rate. This will imply that people in employment gain more from improving their skills and exerting a higher effort. The proposals will in particular increase the supply of high wage - and thereby high productivity labour. This contributes to increase the average productivity.