Should the U.S. Copy Denmark’s Social Welfare Policies? August 3, 2021 Erica York The Biden administration’s proposals to increase transfer payments and expand federal benefits in many ways resemble the social safety net policies of Scandinavian countries. To fully follow the Scandinavian model would require additional taxes that place a higher burden on middle-income earners, but instead, Biden proposes higher taxes on corporations and households making more than $400,000. The resulting combination of tax and spending policies is largely motivated by the desire to reduce inequality. The authors argue that while an expanded welfare state has led to a more equal distribution of income after taxes and transfers are accounted for, government policies have not eliminated inequality in many important life outcomes across generations or improved social mobility: