by SAM PIZZIGATI
Norway, now maybe more than any other nation, is really working to share the wealth.
So you think the rich have life easy, do you? Just try telling that to the deep pockets who’ve spent tens of millions buying condos at 432 Park Avenue, the 11-year-old Manhattan luxury tower that once rated as our hemisphere’s tallest residence. Condo owners in the tower have had to put up with “faulty elevators, leaky plumbing, and noise issues.” They’re now suing the building’s operator.
Or consider the plight of those fabulously wealthy souls who’ve had to pay millions to move their mansions off the sandy coast of Nantucket, the one-time hippie refuge that’s become a summer “holiday hot spot for billionaires.” The problem? With climate change raising water levels, seaside homes on this Massachusetts island now have a nasty habit of “falling into the ocean.”
Or contemplate what life would be like if you were a person of means who fell in love with a mega-yacht the length of a football field and just had to be able to call that yacht your own. The purchase sets you back well over $100 million. But now you’ve just realized you’ll be annually paying at least 10 percent of that purchase price to dock and staff and fuel and insure your oh-so-cute new plaything.
The one saving grace amid challenges like these: Things could be a lot worse. You could be a rich Norwegian.
Norway’s wealthiest have faced a wealth tax ever since 1892, and, over the generations since then, no nation in the world has taken taxing wealth as seriously. But that tradition came under a direct challenge just over a decade ago, in 2013, when a new conservative government came into power. Over the next eight years, that government set about cutting Norway’s richest some slack at tax time.
This conservative government, under prime minister Erna Solberg, trimmed down Norway’s wealth tax, eliminated the nation’s levy on inheritances, and slashed the tax rate on incomes. The predictable result: Norwegians with the greatest wealth, a Statistics Norway analysis found, saw the greatest gains.
“The richest have been given 100 times more in tax cuts than the lowest-paid under Erna Solberg,” the Norwegian Labour Party’s Hadia Tajik would charge. “If you want less inequality, tax policies have to be distributive. That’s the fairest way and gives a better basis for the country to create value.”
In the 2021 elections, voters would agree. The center-left government they voted into power that year moved quickly to reverse the Conservative Party’s rich-people-friendly tax cuts. By 2023, the top wealth tax rate on Norway’s largest fortunes had risen from 0.85 to 1.1 percent, just one of a number of moves that distinctly displeased many of Norway’s richest, among them the industrialist Kjell Inge Røkke. Midway through 2022, Røkke announced he was moving to Switzerland.
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