This week, the second G20 meeting this year will be held in Rio de Janeiro. Finance Minister Trygve Slagsvold Vedum (Sp) and central bank governor Ida Wolden Bache are in place when wealth tax is on the agenda during the meeting. Norway is one of the few countries in the world with wealth tax. According to Vedum, it has gained interest and given them a central role during the meeting. – Norway is quite unique internationally, in being so rich, and at the same time concerned with distributing resources, he says. NORWEGIAN WEALTH TAX: According to Finance Minister Vedum, the G20 countries will now look to Norway for inspiration. Photo: Gunnar Bratthammer The meeting is a collaboration between the most important economies in the world, where Norway this year has the status of guest country. Unlike the Norwegian tax model, the idea of a global wealth tax came from the finance minister in Brazil, Fernando Haddad, at the G20 meeting this winter. The tax means that those with more than NOK 10 billion in assets must pay 2 per cent in tax. It is quite different from the Norwegian model for wealth tax. Ole-Andreas Elvik Næss, researcher at the Norwegian School of Economics (NHH), reckons that the potential global wealth tax could have affected approximately 15 to 20 Norwegians. RESEARCHER: Ole-Andreas Elvik Næss. Photo: Arne Frank Solheim Around 99 percent of those who pay wealth tax today had avoided it. – There is a big problem with the Norwegian wealth tax today. The fine is so low that many ordinary people have to pay it, says Næss. Lots of resources, little distribution Brazil, like Norway, is rich in natural resources. The country is a major oil producer and the world’s second largest hydropower producer. The wealth is nevertheless very unequally distributed. INVITED: This week, the second G20 meeting this year will be held in Rio de Janeiro in Brazil. This year, Norway is among a handful of guest countries. Photo: CARL DE SOUZA / AFP – It is a huge problem globally that someone is becoming super-rich, while the general population is becoming poorer, says Finance Minister Vedum. Central bank governor Wolden Bache points out that inequality can make it difficult to gain support for costly measures, including climate change. ECONOMIC INEQUALITY: Both the finance minister and the governor of the central bank believe it is important that inequality is leveled out in order to prevent economic crises, among other things. Photo: Gunnar Bratthammer – We know that financial crises especially happen to those who are in a bad position, she says. Major economies The G20 countries represent 80 per cent of the world’s value creation, and 75 per cent of the world’s population. Every year, the chairmanship invites a few guest countries, which fully participated in the work of the G20. This year, Norway is the guest country together with Angola, Egypt, Nigeria, Portugal, Singapore, Spain and the United Arab Emirates. The last time Norway participated was in 2017, following an invitation from Germany. Brazil’s proposal for a global wealth tax is due for consideration later this year. Published 21.07.2024, at 08.16
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Now they went to Brazil to teach Norwegian tax to the great powers – news Norway – Overview of news from different parts of the country
