skattekollektivets

Skattekollektivet, which translates to "tax collective" in English, is a term used in Denmark to describe a specific type of tax system. In this system, all income earned by individuals within a household or a defined group is pooled together and taxed as a single unit. This is in contrast to most modern tax systems where individuals are taxed separately on their own income.

The core principle behind the skattekollektivet concept is that all members of the collective contribute to the overall tax burden based on the collective's total income. This can have significant implications for household finances, particularly for couples with differing income levels. For instance, if one partner earns significantly more than the other, the higher earner's income would be taxed at the same rate as the lower earner's income within the collective's total tax calculation. Conversely, if both partners earn similarly, the impact would be less pronounced.

Historically, the skattekollektivet model was more prevalent in Scandinavian countries, reflecting societal norms that emphasized shared responsibility and interdependence within families and communities. While the strict form of skattekollektivet is largely no longer in practice in Denmark, the underlying idea of considering household income for certain tax purposes or social benefits can still be seen in some contemporary welfare state policies. The term is sometimes used colloquially to refer to the general perception of high taxation in Denmark, implying that a large portion of collectively earned income goes towards public services.