Anders Fogh Rasmussen

Anders Fogh Rasmussen (born January 26, 1953 in Ginnerup, Jutland) is the current Prime Minister of Denmark. His Liberal (Venstre) Party won power in the November 2001 election, defeating the government of Poul Nyrup Rasmussen and enabling him to form the Cabinet of Anders Fogh Rasmussen I. That election marked a dramatic change in Danish politics. It was the first time since 1920 that the Social Democratic Party lost its position as the largest party in the Folketing (parliament). Since then, the Liberal Party has operated in coalition with the Conservative People's Party to form a minority government, surviving the 2005 election. Rasmussen's government's agenda is significantly more right wing than has been the case in Denmark for a long time. He is in favour of deregulation, privatization, and limiting the size of government. His government has also enacted tough measures designed to limit the number of immigrants coming to Denmark.

Tax reform

Since the elections in 2001, Venstre, AFR's party, has enacted a total "tax stop", to halt the growth in taxes seen during the previous 8 years under the Social Democrats (Socialdemokratiet). This tax stop has been under heavy fire from the parties on the left wing of Danish politics, allegedly for being "antisocial" and "only for the rich".

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It has, however, been ineffective, judging by Venstre's own intentions. The goal of the tax stop was to halt the growth of public expenditures (and hopefully, halt the growth of taxes), but even with their cuts in public spending (which have been considered aggressive by the aforementioned political left wing), public spending has continued to rise by approximately 1% above inflation, per year.

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From 2004 and onwards, relatively large tax cuts got into effect, on two accounts:

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First, people with jobs get a 3% tax reduction on the 5.5% "bottom tax" (da. Bundskat). This initiative is supposed to encourage people to go off welfare, and take jobs instead.

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Second, the bottom limit of the "middle tax" (da: Mellemskat) of 6%, is raised by 12.000 kr every year, over the next 4 years. This will limit the income stresses of middle incomes and families with children.

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Venstre has so far refrained from making statements on the future of the "top tax" (da: Topskat) of 15%, and the VAT (da: "MOMS") of 25%.

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