Report: An increased wealth tax would create more jobs in Norway

Iselin NybøPhoto: Geir Olsen / NTB
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The analysis announced by the government on the impact of wealth tax on small and medium-sized enterprises concludes that increased wealth tax increases employment, according to newspaper Dagens Næringsliv.

The conclusion of the report from Frischsenteret and the Center for Tax and Behavioral Research at NMBU states:

“The main result of this analysis is that increased wealth tax for majority owners in closely owned, small, and medium-sized enterprises, on average, contributes to increasing employment in the enterprise they own.”

The researchers estimate that one krone more in calculated wealth tax increases the business’s wage sum by 30 øre the same year. Additionally, increased wealth tax reduces, on average, the size of the owners’ withdrawal of dividends and wages from the company – higher wealth tax makes it more profitable to invest the wealth in the company for the owners.

“We must create more”

However, researchers cannot rule out that some majority owners will have to withdraw money from the business to pay wealth tax if they have weak personal liquidity.

Minister of Trade and Industry Iselin Nybø (V), who received the report, says the government’s policy is firm.

“The government’s policy is to lower the tax on working capital without changing the wealth tax rate. 

“This will help increase employment. We must create more, not tax more,” she said.

© NTB Scanpix / #Norway Today

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