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The politicians who govern our country are confident that private business actors will create more jobs and eventually collect taxes that will offset the loss of revenue from the oil industry.
This is a comment. It is the attitude of the writer that is expressed.
The payoff is a rigid tax system that kills entrepreneurial initiatives and scares investors.
When the Prime Minister, Minister of Finance, Minister of Trade and Industry or other politicians in power in Norway are asked why the state does not contribute more to create more jobs, the answer is usually the same:
“Our task is to facilitate an increase in business activity and to pursue a healthy and constructive economic policy that contributes to more entrepreneurs and more people wanting to invest in Norwegian companies, which in turn create more jobs in this country.”
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When the prime minister or minister has left the scene in a black car, the business owner is left with Svarte-Per. The amount at the bottom of the tax sheet is much higher than the bill for the slices, cake, and coffee that were served in the sudden rain during the minister’s visit.
Pious electoral promises
This is pretty much what a talking point might sound like, possibly formulated by some bureaucrat or one of the prime minister’s many secretaries of state and doctors.
We have heard it before, and we hear it again, on the inhale and exhale of the boss herself, Erna Solberg or her ministers. Private investors and business owners are praised in the clouds, and there is almost no way our top elected representatives smile when they visit one or another entrepreneurial company.
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When the prime minister or minister has left the scene in a black car, the business owner is left with Svarte-Per. The amount at the bottom of the tax sheet is much higher than the bill for the slices, cake, and coffee that were served in the sudden rain during the minister’s visit.
The opposition in the Storting does not stand out significantly. Jonas Gahr Støre (Labor Party), Audun Lysbakken (SV) and Bjørnar Moxnes (Red) have roughly the same recipe.
– Now there would be a way in the porridge!
When the blue-blue government took power on October 16, 2013, they had proclaimed through a long election campaign how the tax system should be improved for companies as soon as they received the keys to government offices.
Apparently, she looked brilliant when FRP leader Siv Jensen smiled at the photographers in the venerable Prime Minister’s Office at the Finance Ministry. Now there was going to be a way in the atole!
BIG SMILE: Siv Jensen smiled broadly at the photographer in connection with a Christmas interview at his office at the Ministry of Finance. This was her first year as Finance Minister, just a few weeks after assuming the country’s treasurer position.
Photo: Håkon Mosvold Larsen (NTB)
Instead, private business players experience that they only have money left for the mush, and just enough.
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The pious promises of a fiscal policy that would promote innovative and future-oriented business development were forgotten long before the FRP left government offices.
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Thief companies
The opposition in the Storting does not stand out significantly. Jonas Gahr Støre (Labor Party), Audun Lysbakken (SV) and Bjørnar Moxnes (Red) have roughly the same recipe.
Higher taxes for those who want to invest in Norwegian business and industry, and steal profitable companies through higher investment taxes.
Yes, in fact, you already have to tax about 50 percent of the investments that can help create more jobs. It is guaranteed not to improve if Jonas & Co takes office after next year’s parliamentary elections.
On the contrary.
We have heard it before and we hear it again, on the inhale and exhale of the boss herself, Erna Solberg or her ministers.
Works in a familiar style
At the same time, the Labor Party operates in a familiar style and promises “Work for all”.
In itself, a commendable promise. Especially at a time like now when unemployment is at a record high, mainly as a result of the corona pandemic.
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Like the right wing in Norwegian politics, Jonas and the gang have also forgotten that someone has to create these jobs. The state and politicians should only facilitate, not create.
In a country like Norway with the best-educated population in the world, the world’s best access to power, and not least one of the richest countries in the world, this should be possible.
No binge money
When politicians, regardless of color, debate taxes, estate tax is rarely avoided.
A good number think it is fair and reasonable that a billionaire you read about in the newspaper should pay taxes on his fortune. In most cases, these billionaires don’t have boxes full of cash. Uncle Skrue has mostly containers of money.
Those who are listed at the top level whenever the tax lists are published in the media, usually have their values in real estate, companies, stocks or funds. In fact, the same people often have to use the dividends they receive from their various companies to pay wealth tax.
It is not easy to fulfill the wishes of politicians to invest and create new jobs when the same politicians have created a system that means that a significant part of the profits of many entrepreneurs go directly to the treasury.
It is money that, instead, could have been used to strengthen equity capital in companies, create more positions or invest in new factories, machines or other necessary equipment.
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Neutral tax solution
The debate on whether or not to eliminate the estate tax does not seem to end immediately.
The debate often takes a completely wrong direction where the examples that are constantly being highlighted in the media are whether it is “right” that the famous and rich do not have to contribute to society. This is often the main argument of those who want to keep the estate tax in its current form.
It is entirely possible to remove the estate tax in a tax neutral way, for example by taxing luxury properties and increasing the marginal tax, often combined with the inheritance tax on high fortunes.
This solution will create, to a much lesser extent, negative consequences for the business community, and central government revenues will be roughly the same level as it is today.
In other words, a win-win situation. At the same time, it will help to allocate more capital to productive activities and less, for example, to real estate.
I fully agree that income should be taxed, but property taxes should be significantly reduced, or preferably eliminated.
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It is not easy to fulfill the wishes of politicians to invest and create new jobs when the same politicians have created a system that means that a significant part of the profits for many entrepreneurs go directly to the treasury.
Tax differences must be leveled
At the same time that we are all being encouraged to pay down debt, the estate tax is being imposed.
If you are good at paying your fixed mortgage installments and building equity in your home, you will receive an estate tax bill as a thank you. This is also the case for business owners, who might consider hiring more, developing new projects, or investing in new equipment.
Instead, such plans must be on file when the tax bill comes from the state.
Like the right wing in Norwegian politics, Jonas and the gang have also forgotten that someone has to create these jobs. The state and politicians should only facilitate, not create.
That the ruling politicians, and not least the bureaucracy in the Ministry of Finance, are not able to find better solutions, surprises me enormously.
– It is time for today’s politicians to wake up
The natural and absolutely necessary solution to this is to equalize the tax on property and fixed income securities with the tax on employment generating companies.
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Although the tax level on real estate and fixed income securities is currently 22%, investments in companies and companies that create jobs are taxed at 47% (22% on the business and approximately 32% on dividends), it is say, about half.
It is time for today’s politicians to wake up. Shooting to the right or left side is useless here.
In conclusion, I daresay you almost have to pay the same amount of estate tax, regardless of whether our prime minister’s name is Erna or Jonas after the elections in a year.
I hope to be wrong
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