Denmark’s New Government Targets the Wealthy With New Tax

As Denmark’s new grand coalition government enters office, it unveiled plans to lower most taxes to foster economic growth, making only the very richest pay more.

The first cabinet to span the political spectrum since the 1970s has picked the wealthiest as the target of a new levy, a so-called “top-top tax,” according to Mette Frederiksen, who remains prime minister in the new coalition. The 5% extra tax is levied on annual incomes exceeding 2.5 million kroner ($358,000), she said at a briefing held north of Copenhagen.

On the other hand, tax cuts are designed to help businesses ...