Wealth taxes are all the rage from New York City to socialist Europe. So we should pay attention to the Norwegian government's experiment with this soak the rich policy.
Reuters explains:
The tax was a defining issue in Norway's election in September, which returned the Labour Party to power. The party had raised the levy and tightened exit rules during its previous term.
Individuals pay 1% on net wealth between 1.76 million and 20.7 million crowns ($174,000-$2 million) and, since 2022, 1.1% above that. Exactly 671,639 people - about 12% of the population - paid in 2023...
The changes turned a trickle into a stream. Data from conservative think-tank Civita shows 261 residents with assets above 10 million crowns ($973,000) left in 2022 and 254 in 2023 - more than double the typical rate before the hike.
Now, to try to avoid the outmigration of rich people, the nation has imposed an exit tax - a 37.8% tax on unrealized capital gains of those who leave.
What's next, a Berlin Wall to keep people from leaving?
A wealth tax of 1% takes almost 25% of one's lifetime savings over 20 years.
Here's the scariest part. The Reuters story carried this headline: