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Inequality in Norway is significantly higher than previously thought, with the wealthiest contributing less of their income to the splicing team than most people.
This is stated in a report by Statistics Norway that was published this morning. The statistics above have only used income reported through tax returns. But this time, Statistics Norway has used several types of data.
«We combine data on individuals’ reported tax income with detailed business and property data to correct deficiencies in official income statistics for 2001-2018.»Writes Statistics Norway.
The report shows, among other things, the following:
- The richest one percent of Norway receives 19 percent of all income. This figure was previously assumed to be around 9 percent.
- The richest 0.01 percent, that is, one tenth per thousand of the population, about 3,700 people, earn 6 percent of all income.
- Norway’s richest one percent pay an average tax of 22 percent. Statistics Norway states that Norway’s tax system today is regressive. The top 0.1 percent paid only 9 to 17 percent in taxes.
- Corporation tax and wealth tax constitute a negligible part of the tax for most taxpayers.
– An earthquake
SV is shocked by the report and says Erna Solbergs Høyre is crazy if she wants to abolish the estate tax on top of everything.
– This is an earthquake in the debate on inequality. We now see that inequality in Norway is much higher than we previously thought, and there has been dramatic growth in inequality since 2013. Norway has returned to the inequality we had at the end of the 19th century, says Kari Elisabeth Kaski from SV. Dagbladet.
– Most people hardly know how big the skewed distribution really is in Norwegian society today, he adds.
Level with Great Britain
Statistics Norway explains that income inequality in Norway is higher than official statistics have previously shown, as statistics have only taken income that is reported on personal tax returns.
Therefore, business owners have had incentives to withdraw smaller stock dividends after the dividend tax was introduced in 2006, writes Statistics Norway.
– In Norway, we think we have small differences, but in reality the differences have become quite large. We are on par with Spain, Portugal and the United Kingdom. Inequality in Norway is growing rapidly.
– Why should voters worry, ordinary people are pretty good?
– Because it is unfair and unreasonable, and because money equals power. The rich have opportunities to influence the system in ways that others do not. It’s quite embarrassing. They can help shape the development of society as they wish, just look at the fact that the national meeting of the Conservative Party wants to remove all wealth tax. It just can’t happen.
Millions of smell: – Fiscal shock
– Destroy the social model
Kaski recalls that ongoing strikes for security guards and bus drivers show that many of “most people” have a harder time making ends meet than Erna Solberg admits.
– The destructive one for our entire social model. Now not everyone taxes according to their capacity. The richest do not tax according to their ability, but break the bonding layer and the social contract.
Kaski believes that it is now clear that the Statistics Norway report must have consequences for the 2021 elections.
– A red-green majority must reduce inequalities in Norway. We see this very clearly today. This report shows that the wealthiest do not pay as much taxes as we thought. In reality, they pay less and less tax on their total income, the higher the income you get. We must raise taxes on the richest as soon as possible.
From 2001 to 2018, the Gini coefficient, which measures inequality, increased from 0.23 to 0.25, when income is measured as in official statistics. This corresponds to a growth of 9 percent.
