Magne Robberstad (33) recently inherited his mother’s childhood home in Smestad in Oslo. It is one of the capital’s most expensive neighbourhoods. – I would never have been able to afford this home here, if I hadn’t had the opportunity to get an advance on an inheritance. I have a very average salary in Norway, he says. – I might have been able to afford 2 percent of the homes in Oslo. So this is my opportunity to live in Oslo, he adds. Magne Robberstad (33) is grateful that he inherited his mother’s childhood home in Oslo. Now he lives here together with, among other things, the cat Milano. Photo: Hans-Olav Landsverk / news On average, a single person with an average income can only afford to buy 1.7 per cent of the homes in Oslo. This is shown by a survey carried out by Eiendom Norge and Eiendomsverdi. The detached house that Robberstad inherited today has a market value of around NOK 19 million. New debate on inheritance tax This summer, Oslo city council leader Raymond Johansen (Ap) took the floor to reintroduce tax on inheritance. He believes that an inheritance tax is necessary to give more than those who inherit property in Oslo the opportunity to enter the housing market. The move has once again fueled the debate on inheritance tax. City councilor in Oslo, Raymond Johansen (Ap), believes it is necessary to reintroduce the inheritance tax in order to equalize differences in the housing market. Photo: ISMAIL BURAK AKKAN / news For the heir Robberstad, there is no doubt where he himself stands. – In my case, an inheritance tax would break the whole project. I already have to pay my sister many millions to get her on board with this. And it would never have worked with an inheritance tax in addition, he says. – But is it fair that there is no inheritance tax today? – I think it is fair. Because it gives people like me the opportunity to enter the housing market. But something I think is unfair is that it is so beneficial to own several homes. Because that is what pushes prices up, says Robberstad. 7 out of 10 are against a new inheritance tax The inheritance tax was removed in 2014, when the Conservative Party and FRP were in government. This means that it is currently tax-free to inherit assets. And most people want it that way. This is shown by an news survey that was carried out in connection with the series “Arveoppggyoret” in February. While 71 percent believe that the inheritance tax should remain removed, 13 percent believe that it should be reintroduced. 16 percent are unsure where they stand. At the same time, the measurement shows that there is great variation across the various age groups. Skepticism about inheritance tax increases with age. While 56 per cent of those aged between 18 and 29 are critical of taxing inheritance, a full 91 per cent of those aged between 80 and 99 think the same. The governing parties Ap and Sp have no plans to introduce a new inheritance tax while they are in government. SV: – One of the least unfair taxes Fiscal policy spokesperson in SV, Kari Elisabeth Kaski, is not surprised by the figures news shows her. Despite popular opposition, her party will still introduce a new inheritance tax. – I understand that proposing a new tax will rarely be super popular, she says. Kari Elisabeth Kaski, spokesperson for financial policy in SV, believes it is high time to introduce a new inheritance tax in Norway. Photo: Kristoffer Steffensen Lenes / news Nevertheless, she believes that she can get the people on board by explaining that SV now wants an inheritance tax with a minimum deduction of NOK 5 million. It is significantly higher than the minimum deduction of NOK 470,000, which was the case in 2013. – The fact that wealth is inherited is one of the most important drivers of increased inequality, both in Norway and internationally. We must tax inheritance to reduce the differences and to distribute more fairly, Kaski believes. – Inheritance is money that has already been taxed. Isn’t it unfair to tax these values again? – This really applies to all money. When we pay income tax, it is money that has been taxed before. The big difference here is that it is the very richest in Norway who are perhaps the most concerned about it, and who have a much stronger voice in the public, who get to push forward their arguments, Kaski believes. – Inheritance tax is one of the least unfair taxes we have, with the least negative effects on the economy, she adds. SV wants a minimum deduction of NOK 5 million if they are allowed to introduce a new inheritance tax in Norway. Photo: Kristoffer Steffensen Lenes / news The SV politician believes it is wrong that Robberstad gets to inherit his mother’s childhood home tax-free. – I have a great understanding that there is certainly a lot of sentimental value connected to that home. But it is still a fortune of NOK 19 million. A very high sum, on which you should obviously pay tax when you take over, says Kaski. Conservative Party: – Inheritance tax will not solve the housing problems Conservative politician Mahmoud Farahmand is strongly critical of reintroducing inheritance tax. He sits on the finance committee at the Storting. – Inheritance tax in itself will not create any social equalization or create balance in the housing market. And it will also harm Norwegian business, he says. Mahmoud Farahmand (H) will not reintroduce any tax on inheritance. He believes that social differences are equalized through school and work. Photo: Helge Mikalsen / VG – While some receive many millions in inheritance, others get nothing. How is that fair? – It may not be fair in itself as it is perceived, but we must be aware that the most socially equalizing policy we pursue, we pursue it through school and workplaces, he says. – And the money that people inherit is already taxed through income tax and wealth tax, he adds. Farahmand believes that tax on inheritance will not solve the challenges in the housing market. – What they have to do in Oslo is to look at the housing standard they have introduced and regulate more properties for residential purposes, he says. Magne Robberstad was a participant in news’s series Arveoppggyoret. You can see it here. Hi! Do you have thoughts about the case you’ve read, or input on other cases I should check out? Feel free to send me an email or call me on 91858627!
ttn-69
– I could never have afforded this home – news Norway – Overview of news from various parts of the country
