I sat and read a fair amount this week over Greenland and it's relationship with Denmark.
So....Greenland, as an autonomous territory within the Kingdom of Denmark, maintains control over its own taxation system. Yeah....since 1979...they've been independent.
Taxes collected in Greenland? If you include income taxes (typically a flat rate above 40-percent varying by municipality), are paid to and managed by the Greenlandic self-government. Yes, it stays in Greenland.
There's not a penny of tax revenue....coming back to Denmark.
So to make the system work (for schools, fire departments, road work, bridges)....Denmark writes out a check of roughly $610-M...on top of the tax-revenue collected....to cover bills.
Yes, financially-speaking....Denmark makes nothing off Greenland. If Trump did carve off Greenland....the Danes would actually have near half-a-billion in cash....still in their pocket.
The 40-percent tax-rate in Greenland? One could imagine a deal worked out where state tax-revenue was covered in some way by the US, and the forty-percent of pay taken....was handed back to Greenlanders (I doubt if they would complain).
I'm not saying any of this makes sense. But financially-speaking....there's a better way of handling things.
2 comments:
The only problem would be a bunch of people expecting public services, which isn't really on the US's agenda.
Greenland GDP tells the upside/downside of the story.....their GDP comes from the fishing industry, limited mining, limited tourism (really has only taken off in the past 5 years), and limited oil/natural gas development. Country's social issues.....high unemployment in rural areas, alcoholism, and it has one of the world's highest suicide rates. Denmark's general 'fix' for alcoholism (in both Denmark and Greenland)....ultra-high taxes on booze....apparently doesn't lessen the issue.
I'm not saying it improves if they side with the US. Based on the scenario that China is attempting to take control....Greenlanders are probably asking what is the least of their 'problems'.
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