3 ms·

The poor will only be subsidising the middle class if they pay a more taxes than the rest of socierty. Given that the lowest 20% of incomes in denmark only pay

by msh 6y ago

The poor will only be subsidising the middle class if they pay a more taxes than the rest of socierty. Given that the lowest 20% of incomes in denmark only pays 2,5% of the income taxes I think its hard to say they are paying for other people. (Ref https://www.berlingske.dk/privatoekonomi/se-hvem-der-betaler-mest-i-skat-i-danmark https://www.berlingske.dk/privatoekonomi/se-hvem-der-betaler...) It also makes education more easy to access as you dont have any risks in taking out loans.

refurb 6y ago
2.5% of all taxes, but what is their effective tax rate? And it doesn’t matter how much they pay, if they pay and students don’t they are subsidizing them.
- msh 6y ago
  But students pay, if you get a higher paying job because of your education you will end up paying more taxes. The danish marginal tax rate of 56% is not hard to hit with a STEM degree. And why are you assuming that its the middle class that gets most out of this? The fact that you get free education with a stipend makes it very low risk for people from a poor background to try it out. If they had to take on dept it makes it riskier if you dont complete or dont end up with a high paying job. Its not like UK dept is forgiven if you dont get a high paying job.
  - refurb 6y ago
    That may all be true, but students are being subsidized by low income workers still. Seems unfair.
    - msh 6y ago
      But why is education different from all the other welfare goods that the state provides?
collyw 6y ago
It doesn't make education more difficult to access, jut expects you to pay if it benefits you later in life.
- msh 6y ago
  But you have a large dept burden that keeps growing with interest if you dont find a high paying job.
  - collyw 6y ago
    From what i remember the interest rate is pegged to the rate of inflation, which is usually artificially lowered by the way it is measured (housing costs are not included, make up a large portion of most peoples expenses and are most definitely subject to inflation). Interest was never something that concerned me with a student loan.
    - msh 6y ago
      But it probably would if you could not pay it off for a long time.

by msh 6y ago

refurb 6y ago

2.5% of all taxes, but what is their effective tax rate? And it doesn’t matter how much they pay, if they pay and students don’t they are subsidizing them.

msh 6y ago
But students pay, if you get a higher paying job because of your education you will end up paying more taxes. The danish marginal tax rate of 56% is not hard to hit with a STEM degree. And why are you assuming that its the middle class that gets most out of this? The fact that you get free education with a stipend makes it very low risk for people from a poor background to try it out. If they had to take on dept it makes it riskier if you dont complete or dont end up with a high paying job. Its not like UK dept is forgiven if you dont get a high paying job.
- refurb 6y ago
  That may all be true, but students are being subsidized by low income workers still. Seems unfair.
  - msh 6y ago
    But why is education different from all the other welfare goods that the state provides?

collyw 6y ago

It doesn't make education more difficult to access, jut expects you to pay if it benefits you later in life.

msh 6y ago
But you have a large dept burden that keeps growing with interest if you dont find a high paying job.
- collyw 6y ago
  From what i remember the interest rate is pegged to the rate of inflation, which is usually artificially lowered by the way it is measured (housing costs are not included, make up a large portion of most peoples expenses and are most definitely subject to inflation). Interest was never something that concerned me with a student loan.
  - msh 6y ago
    But it probably would if you could not pay it off for a long time.