Et generationsregnskab for Danmark

This article shows how the method of generational accounting can be used to assess the cross-generational distribution of the lifetime tax burden in Denmark. As a result of high public debt, changing demographics and a large public deficit in the base year (1992), we find that a continuation of current fiscal policy will pass fiscal burdens onto future generations. In order to equalize the fiscal burdens on newborn and future generations, current fiscal policy would have to be tightened by an amount corresponding approximately 6 per cent of the revenue from labour income taxation or a 20 per cent increase in the VAT revenue.