Analysis-Norway's wealth tax trades millionaires for equality

Core Insights - The wealth tax in Norway has led to an exodus of millionaires, with many relocating abroad to avoid the increased tax burden [2][4][6] - The tax structure includes a 1% levy on net wealth between 1.76 million and 20.7 million crowns ($174,000–$2 million), and 1.1% on wealth above that, affecting approximately 12% of the population [4][5] - Supporters of the wealth tax argue it serves as a redistributive mechanism in a country with significant wealth from oil, shipping, and fisheries [7] Tax Structure - Individuals are taxed at 1% on net wealth between 1.76 million and 20.7 million crowns and 1.1% on wealth exceeding 20.7 million crowns [4] - Main homes receive a 75% discount on assessed value, while shares and commercial properties receive a 20% discount [5] - An exit tax of 37.8% on unrealized capital gains above 3 million crowns is imposed when leaving Norway [5] Impact on Population - The number of residents with assets over 10 million crowns leaving Norway increased significantly, with 261 individuals leaving in 2022 and 254 in 2023, more than double the typical rate prior to the tax hike [6] - The Labour Party's return to power in the September election was influenced by the wealth tax, which they had previously raised and tightened [4] Public Sentiment - The political climate in Norway is perceived as increasingly hostile to business owners, contributing to the decision of wealthy individuals to relocate [2] - A ranking by Kapital magazine indicates that 105 of Norway's 400 richest individuals now live abroad or have transferred wealth to relatives living outside the country [6]