What's Happening?
The Danish government has announced the abolition of its value-added tax (VAT) on books, a move aimed at addressing a national literacy crisis. This decision is expected to cost Denmark approximately $51 million annually in lost tax revenue but will reduce the cost of books for consumers by 16% to 20%. Denmark follows the example set by the UK and Norway, which have similarly exempted books from VAT. In contrast, the United States continues to tax books as discretionary luxury items, despite significant literacy challenges among American teenagers. According to the National Assessment Governing Board, one-third of U.S. eighth graders score 'below basic' in reading. In states like Mississippi, books are taxed at the same rate as fast food, highlighting a lack of policy focus on literacy.
Why It's Important?
The Danish initiative to exempt books from VAT underscores the importance of viewing literacy as a public good rather than a private indulgence. This policy shift could inspire similar actions in the United States, where literacy rates among youth are concerning. By reducing the financial barriers to accessing books, Denmark is promoting reading as a universal right, akin to access to roads, electricity, and clean water. This approach could lead to increased social investment in literacy programs, library expansions, and author subsidies, potentially reversing the decline in reading skills among U.S. youth. The move also highlights the need for U.S. policymakers to reconsider the taxation of books and prioritize literacy as a critical component of public education.
What's Next?
While the abolition of VAT on books in Denmark is a significant step, it is not a complete solution to the literacy crisis. The Danish government may need to implement additional measures, such as expanding library services and funding literacy campaigns, to further support reading development. In the U.S., similar tax exemptions could be considered, prompting discussions among policymakers about the role of taxation in education and literacy. Stakeholders, including educators, librarians, and literacy advocates, may push for reforms that align with Denmark's approach, advocating for books to be treated as essential educational resources rather than taxable luxury items.
Beyond the Headlines
The Danish decision to abolish VAT on books raises broader questions about the role of government in promoting literacy and education. It challenges the notion that reading is a private responsibility and suggests that public policy should actively support access to educational materials. This shift could influence cultural attitudes towards reading and education, encouraging societies to view literacy as a shared responsibility. Additionally, the move may prompt discussions about the ethical implications of taxing educational resources and the long-term impact of such policies on societal development.
