Editing Demographics of Denmark (section)

==Taxation and benefits==
{{Main|Taxation in Denmark}}
Although the [[List of sovereign states by tax revenue to GDP ratio|level of taxation in Denmark is among the highest in the world]], the [[Employment|labor market participation rate]] is still high compared with other [[Western world|Western countries]]. Municipal income tax makes up the largest part of taxation in Denmark, with central government income tax topping it up. These [[income tax]]es are higher than in other OECD countries. These direct taxes make up two thirds of the taxation on private households with [[indirect tax]]es of the central government, and [[Municipalities of Denmark|municipalities]] (property tax), making up one third, i.e. with motor vehicles (passenger cars, motorcycles, commercial vehicles) sold from [[Value-added tax|VAT]] registered dealerships – because of the registration fee – being among the most expensive in the world, with prices in [[Norway]] at the same level, and the most expensive in [[Singapore]]. Also VAT in Denmark is not reduced from the current 25%. The 25% are paid on all goods and services where VAT is applied. Indirect taxes are about average compared with other European OECD countries. Payroll taxes (Danish ''sociale afgifter'') are much lower than in other OECD countries. The tax structure ensures a broad tax base across the whole population. However, revenue from corporate taxes is lower compared with other European countries. Municipalities and the central government (regions are not allowed to levy any taxes, as they are financed by central government, and municipal block grants)  redistribute a large amount of their tax income in transfer payments to municipalities with a low tax base and/or few tax payers. [[Danish pre-school education|It is normal for children]] to be in [[Preschool|nurseries]], which requires a partial payment of the costs or is free of charge [[Welfare spending|for low income households]], and in kindergartens owned and operated, or financed, by the public sector. [[Child benefit]] is paid to parents for each child. The service to [[Pensions in Denmark|old age pensioners]], and [[Disability in Denmark|handicapped]] is extensive.

Denmark ranks high in the [[Corruption Perceptions Index#Rankings|Corruption Perceptions Index]], although the index is criticized for being limited in scope.