Norway Wealth tax

Seeing a wealth tax being discussed a lot in the US now.

Here's a cautionary tale of how the Wealth Tax in Norway has made it a real life Atlas Shrugged story

Many countries in Europe have taxed unrealized gains, but later removed it because all of its harmfull side effects. Norway is one of the few countries that still has a wealth tax, and it has been a total disaster.

Since the left wing government increased the wealth tax to ~1,1% and dividend rates to 37,8% two years ago ~80 of the top 400 tax payers have left the country. Representing ~40% of the wealth of those top 400. And it's *not* because of high marginal taxes in general, it's basically only because of taxes on unrealized gains.

Earlier stage entrepreneurs are now also preemptively moving or considering moving even *before* they start companies. I left Norway after we had raised a Series B and I was about to got a wealth tax bill many times my net salary, with no other options for dividend or liquidity on my startup shares.

Outside of oil the Norwegian economy is now stagnating with no productivity growth.

Norway is now very close to Ayn Rand's dystopian Atlas Shrugged society. Anyone that wants to innovate or start a company should obviously do it outside of Norway because you get an impossible tax bill on your lottery ticket startup "wealth".

Politicians and left wingers do not engage in intellectually honest debate when one points how this tax is impossible in practice but simply comes with hand-wavy general "inequality is bad" and "the rich should pay their taxes" arguments.

America is an amazing story of entrepreneurship and also admirable productivity growth over the last few decades. I hope the Politicians don't shoot everybody's wellbeing in the foot by introducing taxes on unrealized gains. Look to Norway if you want evidence on how bad of an idea this is.

Fredrik Haga in Twitter