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Denmark follows a societal model in which the state assumes primary responsibility for the welfare of its citizens. This responsibility (in theory) is comprehensive as all aspects of welfare are considered to be universally applied to people living and working in Denmark since receiving the benefits of the welfare state is the citizens' basic right.
In this model, the state implements pension schemes, supports maternity and paternity leave, provides benefits for the unemployed and supports those living with disabilities. Countries with a generous welfare system such as Denmark impose income taxes up to 60% along with other social taxes. The VAT amounts to 25%. These taxes, however, are redistributed by the state to the needy such as the unemployed. This type of welfare system is usually referred to as the Nordic Model.
http://medicolink.dk/welfare-system-in-denmark