Equality before Efficiency, Politicians before Experts
Denmark stood out in international perspective by maintaining very high top tax rates on labor and high and progressive taxation of capital. This chapter discusses how the organization of economic expertise in Denmark contributed to the limited extent of market–conforming tax reform. Unlike the strong and concentrated position of economists in Norway in the postwar period, economic knowledge in the Danish state was scattered across a number of bodies. A consequence of the institutional fragmentation of economic expertise was that neoclassical economic thinking failed to break through within the Danish finance bureaucracy. This weakened the agenda for efficiency–oriented tax reform and allowed political parties to define the direction for tax policy in the 1990s and 2000s.
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