What was meant to be a modest fiscal tweak has turned into an expensive lesson in capital flight. In 2022, Norway’s Labour-led government raised the wealth tax to 1.1%, hoping to boost annual revenues by $146 million. Instead, it triggered a migration of the wealthy—not just of assets, but of people.
Roughly 50 of Norway’s richest citizens packed their bags and left, including high-profile investors and founders of tech firms. Switzerland emerged as a favoured destination, thanks to its lenient tax regime and predictable fiscal policy. The net effect? A reported $594 million loss in tax revenue—four times the projected gain.
Norway is one of a shrinking handful of countries that still imposes an annual tax on net wealth, and the recent adjustment, though minor in absolute terms, served as a tipping point for those already disgruntled by rising fiscal burdens. The departures, legal but disruptive, highlight a growing tension in policymaking: the trade-off between progressive taxation and fiscal pragmatism.
Seattle Sam
How many times do we have to learn this same lesson? You would not pass Econ 101 if you answered that taxing something does not result in adverse behavior. Exhibit A from our own Country: WA State enacted a “capital gains tax”. It was projected (by people who flunked Econ 101) to raise billions. It did not. Why? Jeff Bezos moved the Florida. DUH.
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