Norwegian Election Sees Tight Race Over Wealth Tax and Inequality

Norway's parliamentary election battle highlights debates on wealth tax and inequality
A view of Norway's parliament in Oslo, 15 January 2020.
A view of Norway's parliament in Oslo, 15 January 2020.[Photo by Habib M'henni, via Wikimedia Commons. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/deed.en)]
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On Sunday, Norwegians began two days of voting in a parliamentary election pitting the center-left Labour Party, led by Prime Minister Jonas Gahr Stoere, against a right-wing bloc of the Progress Party and Conservatives.

The election, concluding Monday, will determine the 169-seat Storting, with results expected Tuesday.

Key issues include the cost of living, public services, and the wealth tax, a policy since 1892.

Polls suggest Labour and allies may secure 88 seats, just enough for a majority, while the right-wing bloc could claim 81.

Wealth Tax Sparks Heated Debate

The wealth tax, a levy of up to 1.1% on assets over 1.76 million kroner ($176,000), is a central issue.

Labour supports it to reduce inequality, while the Progress Party, led by Sylvie Listhaug, demands its abolition, arguing it stifles entrepreneurship.

“The money paid in wealth tax could have been spent creating businesses, new jobs and more innovation,” Listhaug wrote.

The Conservatives, under former Prime Minister Erna Solberg, propose reducing the tax, claiming it unfairly targets businesses.

Social media, particularly platforms like YouTube’s Gutta, has amplified the issue, especially among younger voters.

Coalition Challenges and Global Concerns

Stoere’s Labour may need a broader coalition, including the Greens and Communists, to govern.

This could lead to policies like stricter oil and gas rules or increased sovereign wealth fund spending.

Geopolitical tensions, including Russia’s war in Ukraine and U.S. leadership changes, influence voters, favoring Stoere’s experience.

Norway’s $2 trillion sovereign wealth fund and energy exports to Europe hang in the balance.

Voter frustration, like that of doctor Sigrid Dehli Jensrud, highlights neglected issues such as climate change.

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