Norway's Wealth Tax: A Double-Edged Sword

Norways wealth tax, a levy on personal fortunes, has led to a significant exodus of wealthy individuals, including business owners and entrepreneurs, who seek to avoid the tax burden. The tax, which dates back to 1892, is a key part of Norways economic model, aiming to create a more equal society. However, changes in 2024 closed loopholes for an exit tax on unrealized capital gains, making it harder for emigrants to defer payments. Over 250 wealthy residents left in 2022 and 2023, more than double the typical rate before the tax hike. The tax helps make the overall tax system more progressive and provides revenue that climbed to 0.6 percent of the countrys GDP. However, critics argue that the tax penalizes domestic ownership and could harm Norways entrepreneurial base, making it harder for companies to compete globally.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.