Norway tax

When Mayor Mamdani of New York City says he will put a 2% tax on all income over one million dollars that is the equivalent of a wealth tax even though it is on income. Norway has a wealth tax but it is under pressure in this year’s election. It is 1.0% of all income over $2 million and raises $2.4 billion annually. 720,000 pay the wealth tax but most are small amounts with about 3,000 who have income over $10 million. More than 30 billionaires and millionaires have left the country. In 2022 Norway raised the wealth tax to 1.1% and expected to gain $146 million but ended up losing $594 million in revenue because wealthy people left the country. The labor-controlled government recently voted to keep the wealth tax even though more wealthy people are destined to leave the country. While this seems counter intuitive the explanation is that even though it loses money, it sounds good. This will likely change if more rich people leave.