The leader of the Conservative Party (Høyre), Erna Solberg has presented the party's arguments for a reduction of the Capital Tx. Approximately 684,000 Norwegian taxpayers pay capital tax on their net worth today, acording to Solberg,
She argues that the tax taps Norwegian companies of capital that could be invested in safe workplaces. In addition, it favors foreign interests and provides Norwegian-owned workplaces at a competitive disadvantage. Its is detrimental to entrepreneurs wanting to start new businesses amnd impairs the ability to encance the diversity and local ownership. In addiution the tax penalises regular savings. Abolishing the tax will enhance long term ownership to short term speculations.
- We want to gradually reduce the wealth tax and ultimately remove it completely, said the Conservatives' deputy chairman Jan Tore Sanner, when the party Tuesday presented its proposal for a sharp reduction of the wealth tax.
The proposal will initially mean that about 99 percent of those who pay wealth tax today will get a reduction. During the next four years the idea is to reduce the wealth tax by raising the minimum allowance of 870,000 NOK to 20 or 25 million NOK, and reduce the rate from 1.1 to 0.5 percent. At the same time a reassessment of the reevaluation of commercial properties will be ajusted to the levels of other comparable investments.
In this way, entrepreneurs, small and medium-sized businesses and saving families will be exempt from wealth tax. A reduction of the rates will stimulate at all levels, Solberg says.
Facts about the Wealth Tax:
Wealth tax is personal taxation on assets (property, buildings, machinery and inventories) and accumulated capital. Company profits are taxed at the 28 percent corporate tax. In addition, dividends are taxed by 28 percent on owner hands. Today, the minimum allowance of 870 000 NOK is deductibe from the net worth, and assets above this value are taxed at 1.1 percent. Only Norwegian citizens are subject to pay the wealth tax, foreign owners of Norwegian companies are not.
The Tax Basis for various assets is calculated differently. Cash and listed shares are valued at the market prices, while real estate properties are valued at up to 50 percent of market value. For private companies the valuation is determined on the tax basis of corporate assets
The Norway Post
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