The ruling center-left coalition plan calls for a progressive reduction in corporate taxes from the current 25 percent to 22 percent, as well as an increase in public investment of 6 billion kroner (US$1.05 billion) to stimulate the economy.

“We are creating jobs now, but we are also getting Denmark ready to grab the economic recovery when the internal slump turns,” Social Democratic Prime Minister Helle Thorning-Schmidt told a news conference, adding that while there were no quick fixes, the growth plan was a “step in the right direction.”

At the same time, Economy Minister Margrethe Vestager said no new taxes would be imposed on businesses.

“We are sending a clear signal to companies that we do not plan any new taxes and duties for businesses. This is not just a growth package, it is a complete growth plan towards 2020,” she said.

The tax cut mirrors neighboring Sweden's lowering of its corporate tax this year to 22 percent from 26.3 percent.

Sweden aims to cut corporate tax rates by 15 percent in 2013 in a move estimated to cost state coffers about 16 billion kronor ($2.4 billion).

"This is the most harmful tax of all," Prime Minister Fredrik Reinfeldt told reporters during a Thursday press conference.

In a proposal, the government unveiled plans to lower corporate tax rates to 22 percent from the current level of 26.3 percent.

"We want to provide a stimulus for both small and large businesses," enterprise minister Annie Lööf told reporters, according the Expressen newspaper.

“As you know, Canada has economically outperformed most industrialized countries during these recent difficult years for the global economy. Forbes magazine ranks Canada as the best place on the planet for businesses to grow and create jobs. The OECD and the IMF predict our economy will again be among the leaders of the industrialized world over the next two years….These evaluations are the result of sound fundamentals. Among G-7 countries, Canada has the lowest overall tax rate on new business investment.”
- Canadian Prime Minister Stephen Harper, World Economic Forum, January 26, 2012, Davos, Switzerland



“By 2014, Britain will have a 22% rate of corporation tax. The biggest sustained reduction in business tax rates for a generation. A headline rate that is not just lower than our competitors, but dramatically lower. 18% lower than the US. 16% lower than Japan. 12% below France and 8% below Germany. An advertisement for investment and jobs in Britain. And a rate that puts our country within sight of a 20% rate of business tax that would align basic rate income tax, the small companies rate and the corporation tax rate.”
- British Finance Minister George Osborne, Budget Address March 21, 2012, London, England



“With most of the world — Japan included — cutting corporate tax rates and employing territorial tax systems to remain competitive, the U.S. must surely know that its hesitancy to do these things is handing the advantage to its international competitors. They will suffer from that hesitancy while we and others outside the U.S. will benefit.”
- Mieko Nakabayashi, Japanese Diet, 2012