There has been a steady flow of Norwegians who have moved from Norway to Switzerland this year. Figures from Dagens Næringsliv show that so far this year, 30 Norwegians have either moved, or have notified of a move, to Switzerland. That is six times more than DN has registered in any previous year. And more are probably on the way. Many believe the reason is that the current government has agreed throughout the autumn on several tax increases that hit those with the greatest wealth hard – including through an increase in wealth tax. In Norway, you pay 0.95 percent tax on assets over NOK 1.7 million. No crisis for the economy There is no crisis for the Norwegian economy, in kroner and øre, that someone chooses to take their money with them and move. If you take wealth tax as an example, it accounts for a small fraction of what the state takes in in taxes and duties during a year. In 2023, it is estimated that the state will collect NOK 1,356 billion in taxes and fees from the mainland economy. Just under 10 of them come from wealth tax. Finance Minister Trygve Slagsvold Vedum will not get a much tighter budget after the move. Photo: Heiko Junge / NTB However, it creates challenges in some municipalities, such as Asker municipality, which according to DN loses over NOK 100 million annually in wealth tax after Kjell Inge Røkke has moved to Switzerland. But the treasury will not exactly run out tomorrow because 30 people have chosen to move out. Based on their tax level for 2021, it may indicate that it will cost Norway over half a billion kroner in tax revenue. Misunderstand me correctly; it is certainly worth discussing whether it is stupid that some people who have driven important value creation move to Switzerland, but the state budget will not be much tighter. Provoked by riches That is why it is fascinating how much fire there is in the debate, when the numbers are not that big after all. Just mentioning the word wealth tax in a festive way before Christmas is guaranteed to create an enthusiastic atmosphere. Most people associate wealth with being rich. Therefore, many people are provoked by the fact that “riches” move to Switzerland because they apparently do not want to share their wealth with the community. The debate is also becoming polarised; those who have no wealth and do not pay wealth tax on the one hand – and those who have wealth and must pay wealth tax on the other. Is it really possible to complain that you have so much of something that it is a problem? Is having too much money a problem? Nobody lights a candle for that bunch there. Stays out of the debate An apt description is probably the phrase “I didn’t understand the problem with wealth tax until I had to pay it myself”. Many wealthy people, or riches if you like, choose to stay far away from the tax debate. It is a pity. Representatives of the business world should know their visiting hours to a much greater extent, and sign up. There are also not many of the emigrants who have wanted to participate in the debate. Some may think that it is an impossible debate to win. An example from news’s own platforms was when ship owner Herbjørn Hansson was invited to Dagsnytt 18 in 2020 to discuss tax havens with SV’s Kari Elisabeth Kaski. Shipowner Herbjørn Hansson Photo: Terje Pedersen / NTB Hansson, who spoke positively about the Cayman Islands, was later ridiculed through an immortal YouTube hit where his statements about propriety and robber dens were mixed together with music. An outdated shipping billionaire crashed with the “correct and Norwegian” way of thinking, in the middle of prime time. The video has so far just under 600,000 views on YouTube. I wonder if that episode caused fewer or more “riches” to stand up in the debate. Useful facts There is no doubt that the tax burden for wealthy Norwegians has increased sharply with the new government. The combination of changed dividend tax, wealth tax and changed valuation discounts for shares has in practice doubled the tax on Norwegian ownership. There are also several arguments against, for example, property tax, which may be worth mentioning: A business owner pays property tax on the value of, for example, the machines that pack the goods or the hotel building the company owns – regardless of whether the company makes a profit or not. Thus, in some cases the owners have to take dividends from the company (many people use the expression “depriving the company of money”) to pay wealth tax, and you also have to pay dividend tax on it. People with low incomes also pay wealth tax. Many pensioners, for example, will fall into this category. Norway is one of the few countries with wealth tax, and is therefore the only tax you can easily get rid of just by moving to another country. Impossible to use unanimity What is perhaps a shame is that it seems almost impossible to talk with unanimity about taxes and riches. When many of them pack their suitcases and quietly close the door behind them, you don’t get to have an enlightened conversation in public either. LO leader Peggy Hessen Følsvik Photo: Patrick da Silva Sæther / Patrick da Silva Sæther Billionaire Bjørn Maaseide told DN last at the end of November that “they are chasing a lot of good people from Norway”. On the other side are people like LO leader Peggy Hessen Følsvik who say that it is “payback time” and that “now we will take the rich”. SV has promised that “the party for the rich will soon be over”. But the feast of the rich is not over. It only continues in Switzerland.
ttn-69
In Norway, no one lights a candle for the rich – Ytring
