The "Tax Commission" charged with reforming the Danish tax system has proposed that marginal taxes on labour be cut significantly. As such a move is sorely needed, the proposed reform would be particularly beneficial for the Danish economy. In the longer term it could encourage Danes to work more, train more and generally improve their skills base and make Denmark more competitive in the battle to attract good jobs and companies to the country. In the short term, the reform could provide a boost to lacklustre domes-tic consumption - perhaps making the current crisis less deep - if the reform is not fully financed until a lit-tle further down the line.