Minimum wages and taxes in Denmark
I’m seeing a lot of people talking about minimum wages in the US and using Denmark as a comparison, but I haven’t seen anyone explain how it actually works here in Denmark, so I’ll try to explain:
In Denmark only teenagers are paid less than 16.63 usd in an hour. That means 2495.16 usd a month.
You can earn 6803.96 usd tax free in a year. That money is your’s, no one can touch it. That is 567.03 a month.
That leaves 1928.17 usd that will be taxed. The lowest tax in Denmark is 38% (rich people pay 55%), leaving you with 1195.43.
1195.43 + 567.03 (the tax free money) = 1762.46 usd monthly pay.
Mind you, the cost of living is also a lot higher in Denmark, but you can get by on 453.52 usd a month just fine (after you’ve paid taxes and rent) if you don’t have children. For example, I live well below the Danish “poverty line” but I’m not complaining. I’m doing fine.
There’s also public transportation almost everywhere so you’re not required to have a car. There’s no stigmatization connected with using public transportation except the hassle of it.
38% tax seems like a lot, but the government is very transparent so it’s no mystery what the money are used for. Public healthcare, elder care, education (Danes are paid to take most educations) and so on.
I won’t deny that to be okay with the high taxes it is important to want to help your fellow man and remember that other people are also helping you. It is thanks to the high taxes that our society is so equal, gives everybody a chance to educate themselves and provides us with a safety net in case we lose everything so we won’t end up on the street. It is essential to remember that.
Hope that helped a bit with the comparison. :)