Norway will lose out in the competition with Sweden and other countries because many of the richest are moving from the country. That is the opinion of Svenskt Näringsliv, which corresponds to NHO in Norway. Norway’s tax policy is a strong warning to other countries, says Johan Fall, head of tax at Svenskt Näringsliv. – It is boring for Norway that you pursue a policy that means you lose people who have meant a lot to the country’s development. We have followed the debate and see Norway as a warning example, he says. Johan Fall, head of tax at Svenskt Näringsliv Photo: Svenskt Näringsliv / Ernst Henry Photography – Unfornuftig From the employee’s perspective, it looks a little different. – I think it is unwise to adapt to that type of lobbying to a far too high degree, says economist Anna Almqvist in Sweden’s LO, commenting on the fact that many rich Norwegians are moving. In the Swedish press, Norwegian tax evasion has received considerable attention, including in newspapers such as Dagens Industri and Affärsvärlden. In Sweden, the newspapers write that there is now very little political risk in the country. In Norway it is the opposite. – The Norwegian business world will have worse prospects in the future if many people who have previously been driving the development are no longer in the country. As a result, Norway loses competitiveness. For Sweden and other countries that compete with Norway, it is an advantage, says Fall. Sweden abolished wealth tax and changed capital taxation 16 years ago. It happened in the wake of many wealthy business owners moving from the country in the previous decades. Perhaps the most famous were Ingvar Kamprad and Hans Rausing, owners of the giants Ikea and Tetra-Pak. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher policy rate means increased expenses if you have a mortgage 2021 2022 2023 2024 2025 2026 Forecast Norges bank – Negative development for Norway No Swedish political parties today want to reintroduce the wealth tax, despite growing economic inequality. Both the Vänsterpariet and the Environmental Party De Gröna confirm this to news. These are the parties furthest to the left on the political color scale of our neighbor to the east. Anna Almqvist, economist at Swedish LO Photo: LO While all OECD countries except Spain and Switzerland have removed the controversial tax, Norway has gone the opposite way. Here, the total property tax has doubled over the course of two state budgets. And precisely increased property taxes are the explanation that many give as a reason for moving. Increased food prices The comparison of food prices and the wage trend says something about whether you get more, less or the same amount for your money. When the development of food prices is higher than the development of wages, it means that food has become more expensive. Both figures are averages for the specified period. Read more about sources and reservations here. How much food prices have increased in the last year, compared to salary development Erik Bengtzboe is a former Riksdag politician for the Moderates and now chief economist at the Taxpayers’ Association. It is a membership organization that works for lower and fairer taxes. He predicts that Norway will feel the consequences for many years. – It is a surprising and negative development for Norway. When you make political choices that cause citizens to actively choose to leave the country, you must be allowed to state that it is a very extreme policy, says Bengtzboe. – You want economic redistribution even if everyone becomes poorer, he says. And believes it is a paradox that equality increases the more kingdoms that move from Norway. At the same time, it is those who are left who have to share the tax bill. Would rather have property tax The Swedish National Organization has a long-term political goal of reintroducing wealth tax in Sweden, but does not have it as a priority. In the study tax and capital from 2020, the organization writes that the tax should not be reintroduced due to “serious” practical problems, including tax evasion and that it can be perceived as unfair. Instead, LO is in favor of a property tax that takes account of the housing/land value, in contrast to the current rules, as well as an inheritance and gift tax on large assets and a changed capital taxation. Today, the tax on capital income in Sweden is 30 per cent, but in practice this only applies to interest income from, for example, bank deposits. For share income, the tax is in practice much lower, down to 20 per cent at the lowest. Close to half of that in Norway. – Problematic Economist Anna Almqvist in the Swedish National Organization says that the tax cuts Sweden made 16 years ago have contributed to increasing economic inequality in the country. – I would say that it has actually been quite problematic that we removed the wealth tax and in addition changed the entire property and capital taxation, she says. She is critical of changing the tax system because the richest are moving. – I think it is unwise to adapt to that type of lobbyism to a far too great extent. I believe that a well-thought-out and fair tax system should not adapt to the actions of a few, she says.
ttn-69
Swedes think Norway loses when the rich move – news Norway – Overview of news from different parts of the country
