The matter in summary: – Vestland Høgre proposes to increase the corporation tax in order to remove the wealth tax. – The proposal is seen as a constructive input in a debate with steep fronts. – 75 of the 400 wealthiest people in Norway have left the country for Switzerland, something that is linked to the level of wealth tax.- The proposal faces opposition from the NHO and the head of the Tax Committee, who believe it will make it less attractive to invest in Norway.- Thoughtsmia Agenda rejects the proposal and believes it will reduce the tax system’s ability to redistribute. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. Vestland Høgre is in favor of “adjusting” – i.e. increasing – the corporation tax in exchange for removing wealth tax. Corporation tax is what companies pay on their profits. Storting representative for the Liberal Party, Alfred Bjørlo, calls it “a reasonable concession” from the tax relief party and “a constructive contribution” to a debate with steep fronts. In February, the gagging culminated in Høgre deputy leader Tina Bru in the VG blaming the government for pursuing a “foolish tax policy”. On Saturday, news told about Norwegian “tax refugees” who see their stay in Switzerland as a lifelong exile because the Norwegian tax debate is so deadlocked. Now Vestland Høgre hopes that increased corporation tax can be the victim and the handshake that steers the tax conversation onto a new track. – Ideally, we would like to avoid increasing corporation tax, but we are open to adjusting it if we can remove wealth tax at the same time, says Silja Ekeland Bjørkly, county manager in Vestland Høgre, to news. In her own book Vegen videre, Erna Solberg writes: “Tax on profits, in contrast to wealth tax, is only paid when the company makes a profit. It does not contribute, like wealth tax, to draining companies of capital”. Photo: Christian Breidlid / news 75 of the 400 wealthiest people in the country have left Norway for Switzerland. The proposal is in line with an earlier signal in Nettavisen that the Høgre lease is “on the verge” of increasing corporation tax. Last week Høgre’s own tax committee sent out a “discussion note” for internal use. The note does not contain any guidelines, but is intended to inspire further discussion. On opposite sides of the political middle line, Anniken Huitfeldt and Industry Minister Jan Christian Vestre have left the door wide open to “improve” (understood: reduce) the wealth tax. The level of wealth tax has been blamed for the “Swiss flight” and has traditionally been referred to as the most heated tax battle in Norwegian politics (and social economy). An overview in Finansavisen shows that 75 of the 400 wealthiest people in the country have left Norway for Switzerland during the last period. In January, MDG’s deputy leader Ingrid Liland breathed new life into the debate when she advocated “a real line shift” in Dagens Næringsliv. Across the party statutes, she advocated removing the wealth tax “in order to increase the adaptability of Norwegian business”. – We are now in a program process where the whole party will discuss various solutions to ensure business has room to grow and create jobs. The aim is to reduce the overall tax and duty burden on Norwegian companies, says financial policy officer in Høgre, Helge Orten to news. Photo: NTB – It is an unfortunate proposal – I have much more sense for a tax on profits that affects everyone, not just Norwegian owners, says Helge André Njåstad (Frp). At NHO and the Tax Committee, the response to the proposal is more measured. See below. Stian Lysberg Solum Anniken Hauglie, deputy managing director of NHO – We understand that the coverage of such a reform must be discussed, and that there will then be a discussion about whether other taxes can cover the loss of income. We have two things to say about that. Firstly, that a holistic solution must be discussed. Secondly, that the Supreme Court must not accept that this high tax burden should be permanent. Alf Simensen / N Ragnar Torvik, head of the Tax Committee – It is an unfortunate proposal to increase corporation tax. An increase in this makes it less attractive for both Norwegians and foreigners to invest in Norway. The majority in the Tax Committee is very clear about how important it is to keep corporation tax down. If you want to keep the collected tax revenues up, it is better to increase other taxes. Øyvind Berge Sæbjørnsen / news Roger Hofseth, Action for Norwegian Ownership – Tax on working capital is an unfortunate tax for innovation, value creation and employment in cities and towns – and must be removed if Norway is to keep pace with other countries’ business development. The proposal to increase corporation tax may be one of several sources to cover the wealth tax, and it will in any case treat Norwegian and foreign owners equally. Oddmund Reisæter Haugen Silja Ekeland Bjørkly, county manager in Vestland Høgre – It is time for a tax reform where the overall tax and duty burden is reduced. Vestland Høgre believes it is particularly important to remove the wealth tax, which every day deprives companies of capital, so that they have less time to invest in Norwegian jobs. Ideally, we would like to avoid increasing corporation tax, but we are open to adjusting it if we can remove wealth tax at the same time. Ole Berg-Rusten / NTB Alfred Bjørlo, Liberal Party – Corporation tax is a “cleaner” form of tax, where you tax your company’s real profit. The danger is that the government only listens with one ear, and increases the taxes on business more than they have already done. It must therefore be a prerequisite for such a tax debate that the wealth tax on working capital must go away. Manifest Analysis Emil Øversveen, Manifest Analysis – Wealth concentration in Norway is at a historically high level, and we have higher wealth inequality than, for example, Great Britain, Germany and France. If we want to reduce this inequality, wealth tax is difficult to avoid. Kaja Bruskeland & Elen Sonja Klouman Hannah Gitmark, think tanks Agenda – A higher corporation tax than the countries around us will affect Norwegian competitiveness and value creation. Therefore, not long ago we reduced corporation tax, among other things on the basis of professional advice from the Scheel committee. In the end, it was the Solberg government that broke the tax settlement. They did that when they reduced the tax on shares and operating assets beyond what the parties had agreed on in the settlement. – It is an unfortunate proposal to increase corporation tax. Increasing this makes it less attractive for both Norwegians and foreigners to invest in Norway, says Ragnar Torvik. In 2022, he led the Tax Committee, which delivered the public report A healthy tax system. The committee recommended reducing wealth tax without increasing corporation tax, but not without opposition. A minority of the committee members believed that the scope for changing (increasing) corporation tax was greater than the majority assumed. Torvik has since become leader of the Financial Policy Committee, which a short time ago recommended reducing “unfortunate public spending”, among other things the CO2 compensation scheme. – If it is desirable to reduce the overall tax level, it is possible to reduce public spending. It’s enough to take off, Torviktil tells news. Hannah Gitmark is deputy director of the think tank Agenda, which ideologically leans towards the centre-left in Norwegian politics. She says there is no basis for claiming that the wealth tax causes a greater socio-economic loss than other revolving taxes, and dismisses the proposal from Vestland Høgre. – If you increase corporation tax in exchange for lower wealth tax, it will reduce the ability to redistribute and create value. It is therefore a bad idea. Before Christmas, the hall of Fjord1 breathed life into what is referred to as the most uncompromising tax fight in Norwegian politics. The background is the explanation to the old owner that the sale was “forced” by the special Norwegian wealth tax. “It seems that there is now a dawning understanding that property taxation in Norway must be changed”, writes Kristin Clemet in the Aftenposten commentary Who will own Norway? She refers to new signals from MDG, Ap and Sp. Photo: Øyvind Sandnes / news Aerial photo
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