Article by Tom Gillesberg in the German newspaper Neue
Solidarität Nr. 6, 7. Februar 2007.
itself against capital funds
Also on another key front is a
necessary change in
The capital funds have been buying up
Danish companies, like the telecommunication giant TDC, with borrowed
money. As soon as they got control of the company they would empty the
accounts (and pull the money out of
The proposed government intervention
has the intention of making Danish company takeovers less attractive
for the capital funds. Companies will no longer be able to deduct
interest rate expenses over 10 million crowns (EU 1,15 million), it
will be illegal to offer managers and board members special bonuses
for allowing a capital take over a company (the director of TDC
Henning Dyremose got a “stay on bonus” of close to EU 9 million
for helping the capital funds buying TDC), long term capital
investments can’t be written off right away. Among other things the
company tax will be lowered from 28 to 22 percent and the tax on stock
profits increased to compensate for the intervention.
This lowering of the company tax however is being criticized for being an unnecessary handout to company owners and the financial sector. The trading day on the stock markets bank and insurance stocks rose several percent on the expected extra profit. The Social Democratic political opposition voiced their intension to increase company taxation again if they get in power.
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