Looking at my life in Denmark from a take the good with the bad perspective, it’s not too shabby. Sure, it’s expensive, the taxes are out of control, gas is $8/gallon, I’m having a difficult time with the language, it’s not particularly vegetarian-friendly, the climate could be better, etc. But, I’ve got a job that I love, wonderful colleagues, a beautiful home, 15 days of holiday time to use before May 1, great secondhand shopping, it’s easy to travel in Europe, etc.
For the most part, I’ve stopped converting prices to USD because things cost what they cost and there’s not much to do about it. I look at my net pay and try to forget that half of my salary has gone missing. I go to Danish classes and hack my way through the language as best as I can, but I’m grateful that most people will speak English with me. I approach cooking as a game of strategy and skill. I’ve even gotten to a point where I don’t really mind the climate, Audrey II definitely helps, and there are worse things than spending half the night next to the fire with a good curry and a soft, purring cat.
Despite all of these survival tactics, twice a year, an envelope arrives in the mail, and for a few hours, my tax weary soul seriously considers the alternatives to living in this this tax crazed country. It’s the Danish media license bill, but really, it’s just another tax. Basically anyone with a television, a radio, or an internet connection (including a smart phone, because you really want to stream TV to your teeny iPhone screen) has to pay for a Danish media license, so it’s pretty much just another government-endorsed money grab from the entire population.
To it’s credit, the revenue goes to support several state-owned TV and radio stations (DR), which supposedly have decent commercial free programming, but the only time I use it is if my photographer is visiting. Most of the programming is in Danish, and most of the stuff that’s in English is not worth my time. I’m actually quite happy without television and radio, so having to pay for this Danish media license to finance a service that I really don’t want gets my dander up.
To a point, I can go along with “when in Rome…” but, this stupid Danish media license is one to a household, so I’m penalized for living alone. If I were cohabitating, with say the only person in my life who uses DR, we’d be able to get away with one Danish media license. But I live alone, with a cat, so twice a year, I have to pony up $225 or so for something I (and Opie) don’t want and don’t use. The last time I subscribed to cable was in 1997, and it was the basic package!!!
Following along with the don’t want, don’t use, but must pay theme, this “Danish media license” is very much a tax… a media tax. Except, it’s taxed!!!! Every time I get one of these bills, 25% of it is VAT, which means I spend $112 a year on tax of a tax, and since my income is taxed at roughly 50%, I’m actually paying $900 of my salary per year for this “Danish media license” and $225 a year for tax on tax.
I resent the media tax, and there’s no way out of it except by cohabitation or leaving the country! Actually, I know someone who moved out of Denmark and the media license police tracked him down in the US and tried to make him pay it. They actually have “inspectors” who go door to door to may sure everyone is paying. It’s shameless embezzlement!
Let me put this into perspective… I live in a place where it costs more to register a car than it does for the car itself, where 50% of my income is taken in tax, where I pay 25% sales tax (on everything, including prescriptions!), tax to have a mobile phone for work, a media tax, tax on the media tax, plus income tax to the US. If I order something from outside the EU, I have to pay an import tax of 25%, plus a “service fee,” and the 25% is calculated on the purchase price, plus postage.I have to pay import tax on postage!!! Is it any wonder why I have a black-belt in simple living?
If I should ever move back to the US, I promise to never complain about taxes again.
Diana says
I’m going to bookmark your blog post and send it to the next American who whines to me, “Why can’t we be more like Europe?” (esp. with healthcare) These people just don’t get how much our cousins across the pond pay in tax each year. I can’t even imagine the revolt should the government decide to take 50% out of a paycheck, no matter what wonderful services it offers in return. Heads would roll!
Sage says
Amen, Diana! There would be riots.
Mama Minou says
Wow, this was an eye opening post! I’m wondering if there is any tax-advantaged saving system for retirement, like the 401(k) or 403(b) system in the US, that reduces overall taxable income?
I do remember learning somewhere that it is the relatively lesser economic inequality in Scandinavian countries that is responsible (at least in part) to better national health outcomes.
Fran says
Hi, these taxes that you are paying are certainly horrendous but not representative of taxes all across Europe. Most people (unless you are a seriously high earner) pay about 20% here in the UK and our healthcare is free. We do have a television licence which is about £110 per year and this funds the BBC (which is responsible for some of the programmes that you love in the US!!). I too would hate to pay some of the taxes that you have to pay in Denmark xxx
Anonymous says
I found a link you might find interesting. It’s a little hard to read, but shows Denmark has very high taxes compared to the rest of the world:
http://static2.businessinsider.com/image/50eef524ecad04766900000c-960/tax%20rates%20ranking%20100k.jpg
Amy
Sage says
Mama Minou: I contribute to a pension, but since I will likely leave Denmark before retiring, I’ll only get a portion of it, similar to early 401K withdrawl. Don’t let the healthcare rhetoric fool you, getting sick here won’t bankrupt a person, but the PCPs are the gatekeepers to system, and from what I understand, a lot has to do with who yells the loudest. Luckily *knock on wood* asthma is my biggest health issue so I can mostly stay out of the system. There’s also little emphasis or allowance for early detection measures like mammograms, melanoma screening, colonoscopies, etc. which are routine in the US, even with most HMOs.
Fran: I’d love some years in the UK, and I’d gladly to pay my £110 per year to keep “Downton Abbey” and “Call the Midwife” coming :)
Amy: From a tax standpoint, Denmark is delusional, and they wonder why the majority of foreign workers leave as soon as their 3 year contract is up. The system is a good deal for Danes, but a bad deal for people who have already taken their higher education and will leave before retirement, especially if they don’t have kids.
Living here has really shaken some of my beliefs to the core, I spend many days at odds with myself… I love it here, they’re greedy, it’s for the good of everyone, they’re bankrupting me, we should help the weakest people, what happened to personal responsibility and making good choices? etc… What a trip!
jdbauer says
They slap you with the media tax simply for having a mobile phone. We dodged it for years until they called and I answered. That was it.
francesj says
There are 2 ways these media taxes hit us here, actually. The first one is the license fee that we pay for having access (even if not used) to public broadcasting. I think it’s about 2200 DKK per year per household. This used to just be for those that owned a TV or radio, but now it covers everyone as it’s assumed all have access to the broadcasting via mobile phone or internet.
Then there is the media tax–this comes out of your paycheck each month if you have a company paid telephone or computer that you bring home with you. I think I get about 300 DKK taken from my check for that each month.
Jennie says
Yes the amount is quite hefty, and for the record, I’ve dodged this tax before, right up til the day the license guy showed up at my door. Ugh.
I do want to add the other perspective though, from a close friend of mine who works at DR, and is a staunch supporter of the tax. The way she tells it, this is the only way to keep all DR channels on tv/radio/internet as true public service and divorced from politics and budget cuts. One can always debate the value of what is aired (X-factor – HELLO), but still free from the whims of the government du jour.
I won’t debate here, I’m just adding this to the mélange of voices. BUT – remember when Romney threatened Big Bird? If PBS came from a specific media tax, instead of taxes in general (and donations), Romney’s threat would have been much more transparent as the ideological jab it truly was, instead of the economic non-issue it wasn’t (PBS is 1/10,000 of the budget). Have thought about the Danish media tax a lot since that gem from the 2012 election.
Anonymous says
I understand your frustration with such crazy taxes on something you don’t use.
What I don’t understand is why you’repaying US tax; are you going back to the US too often to be a proper expat? I no longer recall the maximum number of days you can be within the US, but I made sure I was under it so I didn’t have to pay US tax as well as my various European taxes.
Sage says
Jennie: Those “inspectors” are evil :( I wouldn’t mind so much paying for educational PBS-like programming, but I think it’s ridiculous that I’m funding crap like X-Factor. IMO, that stuff should be supported by commercials and sponsors like it is everywhere else.
Anonymous: I’m about as “proper” an expat as they come. I’ve been back to the US once, for 10 days, in nearly 3 years. There’s an upper income limit and any income over that is subject to US income taxes. It has nothing to do with how much time is spent outside the US. Your income must’ve been below the limit.
Jennie says
Therein lies the crux of the problem. If the shows were paid for in part by commercials, then commercial interests (ie. political interests) would take over, and it wouldn’t be “Public” Service anymore, it’d be “Commercial Interest” Service.
This debate can get pretty hairy, though I’m glad I came across it, am reading up on licensing all over the world and how it works. http://en.wikipedia.org/wiki/Television_licence
I’d say this is just another brilliant reason for Denmark, Norway, and Sweden to band together again, costs like this would go down… :)
Charlie says
Hi Sage,
I’m not entirely sure if what I am about to write goes for non-danes as well, but it is pretty easy to “unsubscribe” to the media tax.
I have had several inspectors visit me and my family – they even saw and heard the TV in my living room as they stood at the door. They didn’t bother asking me if I had any devices that could access their channel or their website, so they just signed me up (this has happened 3 times actually)
All I did was go to this site: http://www.dr.dk/OmDR/Licens/Licensforside.htm# and then click “Afmelding af licens”
This should keep them off your back for a couple of months. If you DO see them again, just tell them you have no eligible devices and if they do sign you up, you just repeat the process.
I’ve never paid them a single dime and I’ve been eligible to their mob tax for 8 years now.
If you DO get a bill, just call them up and tell them there must have been some sort of mistake, because you don’t have any eligible devices. That will get them off your tail.