GLØD BAR, GRÜNERLØKKA (Nettavisen): SV politician Kari Elisabeth Kaski and investor Jan Petter Sissener have been hammering each other in the newspapers for a long time.
– If Sissener has good ideas for other tax loopholes to keep the rich from moving, I'd be happy to have a coffee to discuss them, Caskey said recently when Sissener believed the government's new exit tax on immigrants would have no effect. .
Netavisen accepted the invitation, and joined in as two of the country's sharpest debaters battled it out over a cup of coffee.
The fight took place at the Glød bar in Oslo's hipster district of Grünerløkka. Some would say SV's Caskey was at home and Sissener was talking.
Watch the full discussion in the video player below. Here's a taste:
– You have a wonderful arrangement
When Nettawissen asked what most annoyed him about Caskey's rhetoric, “Rickingen” Sissoner didn't have time to think.
– What annoys me the most is that it is shameful to bring it into society in some strange way. Apart from success in the field of sports, instead of paying tribute to those who succeed elsewhere, we do not pay tribute to those who succeed in business.
We are not far from the debate when Caskey points out that Cissener had no ordinary income.
– If the country's super-rich, the richest percent, the 35,000 rich – I think we can count Sissoner among them – paid the same proportion of their income in taxes as an ordinary teacher or nurse, we'd have 50 billion more. We should use it for our society. Security, hospitals, kindergartens, Kaski says with a faint smile.
According to tax lists, fund manager Sissoner had assets of NOK 99 million in 2022. The income was NOK 4 million, and he owed NOK 2.9 million in taxes.
When the discussion turns to wealth tax, Sissoner sees his mean regress.
– As a representative of Storting, you have a fantastic pension plan on which you pay no wealth tax. Am I just asking? That's a question, Sissoner said with a laugh.
– I have a pension scheme in line with other working people. Most Norwegians do not pay wealth tax on their pensions.
— but the self-employed do, they both say in unison, before adding that Caskey agrees.
Can't save for future generations
How much money does the government really need? According to Chisener, it was not like it is today.
Sissoner wants to get rid of the much talked about wealth tax. He will raise corporation tax, which is 22 percent on corporate profits, to make up for lost revenue to the government.
Simply explained: This is how the government has raised property tax
Wealth tax is, as the name suggests, a tax on wealth in the form of cash on books, stocks and property.
One of the points behind this tax is to ensure that none of the country's richest people become zero tax payers.
The government with the Labor Party and the Center Party has raised the property tax. This increase has been blamed as the main reason for many wealthy Norwegians to leave the country.
The government has changed the tax in three ways:
1. Increased rate
The effective rate of tax has been increased from 0.85 percent to 1.1 percent.
2. Modified assessment
Wealth with houses and stocks is taxed differently, and this is where it matters.
When the state issues a tax bill on the value of a primary home, the owner is only taxed 25 percent of the home's value. So the “estimate” is 25 percent. The government has raised the assessment of primary housing to 50 percent for every kroner with a home value of more than 10 million.
For secondary housing, the government has raised the rating from 90 to 100 percent. Vacation homes have a 30 percent rating.
The government has increased the valuation of stocks from 55 percent to 80 percent. This change has particularly affected the tax bill of many Norwegian company owners and has been used as an explanation for the tax flight to Switzerland.
3. Increased Minimum Exemption
The government has increased the basic deduction from NOK 1.5 to 1.7 million. This means you pay no wealth tax on the first 1.7 million of your wealth. For married couples with joint assets, the minimum deduction is doubled to Rs 3.4 million.
Income has increased
About 14 percent of Norwegians pay wealth tax, but most of it is paid by the very rich. 70 percent of property tax revenue goes to municipalities and 30 percent to the state.
Under this government, the total tax revenue has increased from about 17 billion in 2021 to 30 billion in 2023.
That's a really bad idea, Caskey snaps:
– The country's super rich have succeeded by telling the story that property tax is the problem. They say they could throw the country's small and medium-sized businesses under the bus and pay higher corporation tax. It is unwise.
Caskey points out that to make up for the money you'd lose by eliminating the wealth tax entirely, you'd have to raise corporate taxes too high. Then Chisener brings in a debit: public spending.
– But do you need a profit of 1,400 billion? asks Sissner.
The state needs its revenue, otherwise it would have to cut it, Caskey points out.
– 1,400 billion surplus for the state by 2023. That's almost the entire state budget, answers Sissoner.
– Don't you think we should have a buffer and at the same time save for future generations, asks Caskey.
– No, not saving for posterity, really. They have too much prosperity to achieve, answers Sissoner.
The SV politician doesn't believe what she hears.
– Well, Sissner rolled her eyes as she continued.
Watch the clip here:
They brag about each other
After a long debate, can the two – in good Norwegian sportsmanship – tell each other favorably?
– Very few of Norway's wealthy stand up for public debate. I'm glad you're doing it, and I think it's necessary to bring out these important differences of opinion that can contribute to enlightenment.
– Thank you very much, said Sissner, and replied in an almost appreciative manner:
– I appreciate that we are having this discussion. I wish more politicians had practical experience, he says, and quickly adds:
– But at least you show an understanding of the challenges the business world faces, which I think is positive. And this also applies to franchisees, because being a franchisee in Norway is not easy. Therefore, many Norwegian businesses are sold outside the country. I cry every time, Sissoner concludes.
See the full tax debate here:
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